Top Heavy Initial Plan Year - Traditional 401k plan

[Guest elirpa]

I think I know the answer regarding this.... but I thought I would get thoughts of others.

I have a 401k plan that made their 401k deposits for the owners from a 12-31-04 bonus check in January 2005. This is the initial plan year, and none of the employees deferred; hence the owners are the only participants with account balances. Since this is the initial plan year, top heavy is determined from the balances at the end of the plan year. Are deposits in transit excludable since they were not in the plan 12-31-04?

[Belgarath]

I read 1.416-1, T-24, to require that these be included for the initial plan year. However, the wording isn't quite as clear as I would like.