Santo Gold Posted March 17, 2006 Posted March 17, 2006 A company had a 401(k) plan for several years back in the 90's. Business got bad, they terminated the plan in 2002 and paid out in 2003. There were only 5 employees, 3 of which were HCEs/Key's and the plan was top heavy. Business is better now, and the employer wants to start a new 401(k). Same three HCEs/Key's but with about 8 NHCEs now. Would the distributions to those 3 keys still count toward top heavy in a new plan? It's possible that the new plan would not be top heavy starting fresh in 2006, if we do not have to count anything from the prior plan.
Kirk Maldonado Posted March 18, 2006 Posted March 18, 2006 Did you check the regulations under section 416 to see if they provide any guidance? Kirk Maldonado
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