Controlled Group Top Heavy Aggregation

[R. Butler]

Company A owns 80% of Company B, thus a controlled group. Company A & Company B each have their own plan benifiting their own employees. We have just taken over the adminsitration of Company A's plan. Prior administrator never aggregated for top heavy. Current administrator of Company B's plan is not aggregating.

I hope I am missing something, but it seems to me the Plans must be aggregated for top heavy. Am I wrong?

[RCK]

I don't think that you are missing anything. They have to be aggregated for Top Heavy, as well as participation and coverage.

RCK

[Guest Boilerburm]

It depends - you need to look at the required aggregation group rules. Basically, if one of the plans is available only to non-key employees, and each plan passes coverage on its own, then they are not part of the required aggregation group, and the top-heavy testing can be done separately. If, however, these conditions are not met, then I agree that you need to run the top-heavy test aggregating the plans.

[R. Butler]

Thanks for the replies.

Each plan does benefit key employees; not the same key employees, but that is irrelevant.

I was fairly certain of the answer, but because other administrators apparently arrived at a different conclusion I was just looking for some verification.