Jim Chad Posted July 26, 2011 Posted July 26, 2011 A man rolled over his account from one companies 401(K) Plan to another. If I have to count this rollover, the Plan is Top Heavy for and not Safe Harbor. He was 100% owner of the old company which went broke. He is now 50% owner of the company which bought the assets of the prior company about 10 years ago. Is this rollover account counted for Top Heavy?
ETA Consulting LLC Posted July 26, 2011 Posted July 26, 2011 When he rolled in the plan in, did he have the option of rolling it over to an IRA instead? If so, then it would not be a related rollover. Good Luck! CPC, QPA, QKA, TGPC, ERPA
K2retire Posted July 26, 2011 Posted July 26, 2011 Similar question -- company sponsored an ESOP, but terminated it. Business owner rolls his part into an IRA. Some years later, he rolls the IRA into a new 401(k) plan of the same company. I would have believed that to be a related rollover, but the reply to the OP implies otherwise.
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