Effective Date of Top Heavy Provisions for EGTRRA

[Guest bgiles]

We have a client that has not adopted any EGTRRA provisons. They intend on making the EGTRRA amendments along with the GUST restatement this year. A prior carrier calculated the 2002 top heavy test (12/31/01 Determination Date) using the changes to top heavy plans under EGTRRA. Namely, they only included distributions in 2002 and not the prior 4 years. The plan was determined to be top heavy in 2002 for the first time. However, in the past few years the plan has had numerous distributions to non-keys, enough such that the plan would not be top heavy if they used the old rules and included the prior four years distributions to non-keys. I am wondering if we can still use the old rules for top heavy distributions in 2002 because the client never adopted the EGTRRA amendments?

[Tom Poje]

This is not a choice. you must follow the new rules in practice.

[Blinky the 3-eyed Fish]

I have another rule that should be followed. Don't post the same question in 2 different areas.