Dennis Povloski Posted January 12, 2012 Posted January 12, 2012 Running the Top Heavy test in a 401k plan. A participant rolled money into the plan during the year. This always confuses me.... 1. If the rollover comes from an unrelated employer plan, I know that something shouldn't be included in my test. Is it just the rollover contribution? or is it the entire rollover balance on the determination date? For example, the rollover contribution was $1000 on July 1st, on December 31st, the rollover balance was $1100. Do I exclude $1000 or $1100? 2. Is the rollover excluded forever, or just in the year of the rollover contribution? I think just in the year of the rollover contribution, but am not sure. 3. I think the whole point of this is so that the rollover is not double counted. Does this apply to an IRA rollover into the qualified plan? Thanks!
Tom Poje Posted January 12, 2012 Posted January 12, 2012 a rollover from an unrelated source is not used in top heavy testing - no matter what date it was rolled in, no matter how much gains, no matter what.
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