Excess contributions and excess aggregate contributions in determining

[R. Butler]

It is my understanding that corrective distributions of excess contributions and excess aggregate contributions are treated as "distributions" for purposes of determining top heavy status. My basis for including is that such corrective distributions would be considered annual additions.

It has been presented to me that such distributions should not be considered distributions for top heavy purposes? Is there a solid basis for this point of view?

[Guest]

I don't know of any basis to say they 'should NOT' be included. I would weigh on the conservative side and include them, because, as you pointed out, they counted toward the annual addition. and maybe a further argument would be 'a tax deduction was taken for the contribution when it was put into the plan'

If, on the other hand, it was a distribution due to 415 limit (e.g. deferrals were returned) then I wouldn't count them.