rollovers/top heavy testing

[Guest jdw]

We're debating whether to count earnings on rollovers for top heavy purposes. Arguments on both sides; regs allowing exclusion of rollovers from TH test don't mention earnings.

Any comments?

[Tom Poje]

I think you are reading too much the letter of the law - simply cuz it doesn't say rollover 'plus any earnings that may occur'

Pretend the rollover didn't exist.

the plan would have less earnings cuz it had less money. Its not like the earnings would still be there, and they simply got allocated to the rollover in addition to the other accounts. thus, it would seem logical not to include earnings.