FAQ 439: Top Heavy Minimum Calculation--Report showing top-heavy amounts when not top heavy


According to the "416 Top Heavy Determination" report, at 12/31/2003 this plan was not top heavy at 58.1%. I asked the system to update the top heavy status information, so it's coded never top heavy for 2004; (since Top heavy determination is at 12/31/2003).

However, when I run the "416 Top heavy Minimum Calculation" report (valuation date:
December 31, 2004) - it tells me that additional top-heavy contribution is needed.

What am I missing? I don't want to have to allocate a top heavy minimum if I don't have to, but certainly, I need to have a compliance report that says that NO top heavy contribution is required.


If the plan is not top-heavy, there is no need to run the "416 Top Heavy Minimum Calculation" report. This report is designed only to help clients generate the top-heavy minimum. The "416 Top Heavy Determination" report should be run to reflect the top-heavy status to be delivered to the client. If the plan is shown here as not being top-heavy, then no top-heavy minimum is required.