Top-Heavy, Loan form unrelated rollover source

[R. Butler]

Key employee takes a loan from the unrelated rollover source. Does that loan now count in the top-heavy determination or is still excliduible. I would think it is still excludible, but can;t find anywhere it deifnitively says that.

Thanks in advance for any guidance.

[Lou S.]

The loan follows the source it came from as it is mearly an investment, not a seperate source, and should be considered part of that source for testing purposes. Exclude the portion of the loan that is from the unrealted rollover source.