PensionNewbee

Sigh. That's the direction I was afraid this would go. I've been reading the EPCRS Revenue Procedure, and every mention of top heavy corrections says to contribute and allocate the amounts, but does not specifically say that these contributions have to be adjusted for earnings. Am I expecting too much or missing something? How are earnings supposed to be calculated for this kind of problem? And what if the plan lost money?

a plan is top heavy in 2000, 2001 and 2002. The 2002 minimum contribution was made. The 2000 and 2001 contributions have not been made, because TH was "discovered" in 2002. Do the minimum contributions to be allocated have to be adjusted for earnings? Point me to the right section of the regs/rulings!!! Thanks!

Sheesh. It isn't as cut and dried as reading the plan document or the regs, is it? The software I'm using is Relius. The software used prior was Datair. I do believe that Relius is including the contribution since the transaction posting it was done prior to running the TH test. If this is the case, do I reverse the PS contribution, run top-heavy, then repost the contribution?

The plan started 1/1/2000. The 53.80% ratio comes from a Datair report (this is a takeover plan) run for the 12/31/2001 plan year. It states that "the plan is not top-heavy next year". The 2002 account balances reflect the 2002 PS contribution which was actually made in 2003. Does this make a difference? So much to learn!!!

2001 PYE ratio was 53.80 2002 PYE ratio is 60.02 top-heavy 2002? the plan is top-heavy in 2003.

do I need to worry about this test for a DC plan?

I've got a plan that transferred investments mid-year to Nationwide. I cannot figure out how to zero out the transfers, because the transactions manually entered to this point include all five of the funds that transferred into NW, and the downloaded info from NW also includes the transfered amounts. How do I zero out the transfered investments in Relius?