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Top Heavy


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Guest Frank Jackson
Posted

Unrelated rollovers are not included in the account balance for Top Heavy determination. However, should the earnings on the unrealted rollover that accrue in the receiving plan be included in the account balance for top heavy? For example, the unrelated rollover amount of 5,000.00 is deposited to the plan. The unrelated rollover earns $500.00 in the receiving plan. Should the $500.00 be included in the account balance for top heavy calculations? Any code sections that you know of would help. Thanks!

Posted

suppose the rollover wasn't there. the plan would have had $500 less in earnings. so, the earnings on the unrelated rollover don't effect the top heavy calc either.

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