Top-Heavy Plans

Duration: 60 Min.



A plan is “Top Heavy” if more that 60% of the plan’s assets or accrued benefits are held by “Key Employees.” When this occurs, the plan is subject to special minimum contribution and vesting requirements. Determining Top Heavy status needs to be done each year, and will use a plan’s history along with the current year information. All of this needs to be properly set up and maintained. Then the Top Heavy test needs to be processed and the needed steps taken to satisfy those special requirements. And then there is aggregation, multiple plans of one employer or related employers that need to be combined or separated for this process. All of these are part of the Top Heavy testing process.

In this session, we will:

  • define a Key Employee and a Top Heavy Plan
  • set up and maintain a plan’s history for Top Heavy Testing
  • enter census data and process eligibility to determine Key EE status
  • perform the Top Heavy test and process required minimum contributions
  • determine the proper vesting needed in a Top Heavy Plan
  • demonstrate “Required” and “Permitted” aggregation of plans for Top Heavy testing



Event Details