Top heavy and catch up contributions

[Guest kelly9522]

In determining Top Heavy for 2004,

determination year - 1/1/03 to 12/31/2003

12/31/03 determination date

It is not a new plan.

the catch up contribuitons for 2003, made by the key employees , are they subtracted out of the 12/31/03 balance?

[Mike Preston]

I don't think so.

[E as in ERISA]

I agree. The preamble for the regulations says: "Catch-up contributions with respect to the current plan year are not taken into account for purposes of section 416. However, catch-up contributions for prior years are taken into account for purposes of section 416. Thus, catch-up contributions for prior years are included in the account balances that are used in determining whether the plan is top-heavy under section 416(g)."