FAQ 552: Top Heavy Test--Multiple plans not using correct account balances

Problem: I am running the tests with 2 plans, using the profit sharing plan as the base plan with a 9/30/06 pye and a 9/30/05 Determination Date. The 401k is a 12/31/06 plan year, so it should pull the 12/31/05 balance. PS - Source 2 Profit Sharing and Source 7 Rollover 401k - Source 1 Deferral and Source 2 Profit sharing

Solution: When multiple plans are linked on the top-heavy test, the sources are read from the base plan. Because your profit sharing plan does not have a Source 1, you do not have the selection of Source 1 when setting up the top heavy test. So, to run the top-heavy test and include that source from the second plan, you need to set up a Source 1 in the profit sharing plan by entering a Source Description code for source 1. You should then be able to select that source when running the top-heavy test from the profit sharing plan. Once test has been run, you can then go back into the profit sharing plan and remove the Source Description that is assigned to source 1.