Hi!

I have a client who is ready to terminate his plan over top heavy!

At PYE 2003, we determined that the plan is now top heavy. Now down to 10 employees he's had 3 valid hardship terminations and and 3 employees stop making deferrals at all.

We figured that if the hardships had not been taken, they would not be top heavy.

Any suggestions?


********************* Side note********************
Is the Michael Preston on this message board, the same Michael B. Preston, EA, MAAA that I use to work with in Los Angeles? If so, guess who?

I assume you mean hardship distribution and not hardship termination. All in-service distributions are added back to the participants' account balance within 5 years before the determination date in regards to top heavy. It sounds like your plan is not top heavy based on the information you have provided.

Yup, that's me. No clue, as usual, though.