Determiantion of Top Heavy Status

[Tom Poje]

if it is first year of plan (no begining balance) you count everything.

you always count required contributions no matter when deposited.

deferrals made in Dec, not deposited until January

Match, if by formula rather than discretionary (dont include these)

if this was a money purchase rather than 401k, you would count the required contribution

[LCARUSI]

I am working with a 401(k)profit sharing plan (plan year is calendar). I will determine topheavy status for 1999 based on acct balances as of 12/31/98 (which is a valuation date).

When determining individual account balances, my reading of the reg 1.416 T-24 tells me I do not have to include contributions which are posted to participants' accounts as of 12/31/98 but are actually contributed to the trust sometime in 1999.

Is this correct?

Thank you for your help,

Len