Top Heavy and under 1,000 HOS

[Guest dhall]

A participant in a 401(k)PSP will be part-time this year (<1,000, >500 HOS). While the participant is still eligible to defer, the DC plan is NOT Top Heavy. The client also has a DB plan, so would this participant still get the Top Heavy since the DB is Top Heavy, which would then initiate the Gateway in the DC?

[Tom Poje]

1.416-1 T-1 (b) says "All plans of the employer in which a key employee participates MUST be aggregated"

© says "Once aggregated, all plans that are required to be aggregated are either top-heavy or not top-heavy"

because of the aggregation rules, the statement 'the DB plan is top heavy and the 401k plan is not' makes little sense unless you do indeed have a situation in which the lkey employees only participate in the DB plan.