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Good morning to all! We have a plan where there are two Key employees as identified by our software and they both surprise us in how they were handled. The first one was already HCE in 2016 but not Key, by virtue of his salary. He does not own any stock in the company. In 2017 he became the President of the company. The software identifies him as a Key employee in 2017 and we thought it would be 2018 before he would be considered a Key employee. The second employee was Key already but died in 2017 and his account balance was distributed before 12/31/2017. The software put his distribution in the account balance column as a negative number and subtracted it from the President's account balance to get a net difference for the Key employees' balances for the year. To be clear: President has let's say $200,000 which is considered a Key balance, to our surprise, and deceased person's distribution of his $10,000 account balance is picked up as a negative number in the test, so the net Key balances on the Top Heavy Test are $190,000. Does this seem normal to any of you? Thanks in advance for any advice.
