Top Heavy Plan - attribution rules apply to terminated employee

[Nancy D]

Hi all,

I have a situation where company is owned 100% by A. A's mother worked at the company, terminated 3 years ago, has not take a distribution. Is mom's account balance included with A's in determining whether plan is top heavy?

Thanks much for any help with this issue!

[ETA Consulting LLC]

No. If she terminated employment 3 years ago, she wouldn't be included in the Top Heavy Analysis; regardless of whether she's Key or Non-Key.

Good Luck!

[Nancy D]

Thanks, I got myself going in circles with how attribution fit in to this example.

I appreciate your help!