FAQ 437: Top Heavy Test--Coding QDRO distribution and stored for 5 years for lookback rules

Problem: How should I code a QDRO distribution to make sure that it's included in the Top Heavy test for the full 5 year lookback period? My understanding is that distributions not due to separation of service, death, or disability are included in the Top Heavy test for more than just the 1 year lookback.

Solution: As long as the participant does NOT have a DOT - the system will store the withdrawal as an "in-service" distribution and will keep it for 5 years.