Are 403(b) assets considered when determining the top heavy status of a DC plan?

[katieinny]

The not-for-profit ER has a PS plan for ER contributions and a 403(b) plan for EE contributions. Should the 403(b) assets be included when determining the top heavy status of the PS plan?

[david rigby]

http://www.benefitslink.com/boards/index.php?showtopic=7759

[wmyer]

This question has been asked a few times on this board, but never answered, as far as I can tell. Anyone have a definite answer to this? 1) Must 403(b) assets be included when determining whether a 401(a) is top-heavy? 2) May 403(b) assets be included?

[WDIK]

This question has been asked a few times on this board, but never answered, as far as I can tell.

Well, I certainly don't want to be the first one to answer, but I will point out the following langauge from Section 1.416-1.

G-1 Q. What retirement plans are subject to the top-heavy rules added to the Code by the Tax Equity and Fiscal Responsibility Act and amended by the Tax Reform Act of 1984?

A. All stock bonus, pension, or profit-sharing plans intended to qualify under section 401(a), annuity contracts described in section 403(a), and simplified employee pensions described in section 408(k) are subject to the new top-heavy rules added to the Code by the Tax Equity and Fiscal Responsibility Act and amended by the Tax Reform Act ("TRA") of 1984.