Top Heavy Requirements

[Guest Toni Jo]

I'm trying to remember what the new regulations for Top Heavy Testing are. I have an owner who is taking a distribution but he is retaining ownership in the company. I say that we need to consider this distribution still for 5 years, my boss says no just 1. So I need to ask which is correct or are neither correct?

Thanks for the help.

[Guest Stuartt]

See IRC 416(g)(3)

[austin3515]

In-Service distribs are the 5 years. All others are one year.

[Guest Toni Jo]

Thanks, I knew I had read the 5 year somewhere but could not put my finger on it.