Successor Plan when Previous Plan is TH

[BG5150]

A plan terminates in 2016 and funds were distributed.

Company opens new plan for 2018.

Are those plan distributions added back in as in-service withdrawals for 5 years?

[ETA Consulting LLC]

Actually, I think they do :-) 

Good Luck!

[C. B. Zeller]

I agree with ETA. Here's a cite from 1.416-1 (emphasis added):

T-4 Q. How is a terminated plan treated for purposes of the top-heavy rules?

A. A terminated plan is treated like any other plan for purposes of the top-heavy rules. For purposes of section 416, a terminated plan is one that has been formally terminated, has ceased crediting service for benefit accruals and vesting, and has been or is distributing all plan assets to participants or their beneficiaries as soon as administratively feasible. Such a plan must be aggregated with other plans of the employer if it was maintained within the last five years ending on the determination date for the plan year in question and would, but for the fact that it terminated, be part of a required aggregation group for such plan year. Distributions which have taken place within the five years ending on the determination date must be accounted for in accordance with section 416(g)(3). No additional vesting, benefit accruals or contributions must be provided for participants in a terminated plan.