Merger of Top Heavy and Non-Top Heavy Plans

[KJohnson]

Pursuant to a corporate merger, a top heavy plan and a non-top heavy plan merge mid year. The resulting plan would be top heavy. However, since the "determination" date is the last day of the preceding plan year--what do you do? The plans were not in a required aggregation group as of the determination date. Could you have an argument that the top heavy contribution only needs to be made on the participants in the "old" top heavy plan? The "transfer" rules indicate that you include all amounts in the top heavy determination, but do you do this retroactively for periods prior to the actual transfer?

[This message has been edited by KJohnson (edited 09-24-1999).]

[Dowist]

Don't know, but one way to get this result would be to wait to merge the plans until the first day of the next year.