Top Heavy Minimum and Business Unit Sale

A client is an adopting employer in an MEP. The employer is Top Heavy for 2020 and the keys are contributing. The employer is stating that they will be selling a business unit this year and terminating non-key and possibly key employees. How does this impact the 2020 Top Heavy minimum? Are those employees simply deemed as terminated prior to the end of the year and not allocated the Top Heavy minimum? Or, would the minimum be calculated on compensation until the sale for those employees?

Any feedback is appreciated. Thank you.

Read your document, the answer is probably in there.

As for who "must" receive the TH minimum for 2020 in a DC plan under 416 it is any non-key participant who is actively employed on the last day of the plan year. Though the terms of the document may be less restrictive on who is eligible.

You don't give numbers - real or relative - but I assume can't be too large since TH. Be careful of coverage, which could require adding back in non-key/NHCEs, and partial termination vesting in addition to general TH issues.