Top Heavy Test

[Guest slugn]

I have a plan that has a few individuals that terminated in 2006 or 2007. We forced these participants out in 2008.

In several cases they were not employed when we paid them out but were rehired later in the year. Do I need to add these distributions back into my top heavy test since they had hours of service in 2008?

In several other cases we believed the individuals that terminated in 2006 or 2007 were not employed when we forced them out. We learned in March 2009 that they had actually been rehired before 12/31/2007. We weren't notified that they had been rehired until March 2009 during the census gathering process. The client did not report these individuals during the 2007 testing process. In these cases, their accounts should not have been forced out. I believe we need to request that they return the distributed assets? I believe that these distributions should not be added back in as they were paid out in error.

Thanks for your responses.