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Manipulating the top-heavy test


R. Butler

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I have a new plan in 2009. Key employee takes a loan. About $2,000 comes from the employee deferral source; $18,000 from an unrelated rollover source. For this particular plan we don't build the loan onto Relius, we receive a financial data download from investment vehicle holding the assets. Although all the loan withdrawals & repayments are shown going in & out of the correct source, for purposes of top heavy the loan is a separate source & the entire outstanding balance is being included in the top-heavy test.

My question is this -- Is there an easy way to manually play with the top-heavy balance to make it correct?

Thank you for any guidancce.

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don't know if you would consider this "easy", but I save the Relius top heavy test as a Word Document to make changes...would that work for your needs?

Thank you. That is probably what I will end up doing, but I get nervous that I will screw up the math somewhere.

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in the unrealistic and bizzarre Poje world you could probably set up a DER using (using the key ees soc sec number)

top heavy test distrib history

and enter a 'positive' distribution value for 'in-service distribution' for a year 12/31/2005 (assuming you are doing 12/31/2009 val) since its a positive distribution which of course makes no sense the system will then treat it as a 'negative' and then reduce the top heavy balance rather than increasing the top heavy balance

the reason for using 12/31/2005 is so that the system will ignore this value the following year since it will be more than 5 years.

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Can't you post the loan in Relius, run the Top Heavy test and then delete the loan?

I don't know that that is a good option. I might be thinking about it incorrectly, but it seems to me that I would have to manually enter the loan activity for the year and also manipulate the financial extract file to prevent that loan activity from coming in. Manipulating the file isn't terribly difficult, but it can be time consuming.

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