For the plan year 2003, we are going to make two attorneys partners. They will each own exactly 5% and compensation will be al least $150,000. They will not be officers. I needed some clarification on whether they will be considered key employees for 2003 top-heavy testing. Is it 5% or more than 5% ownership that makes them key. If they own at least 1% but make more than a certain amount are they still considered key. Any other clarificaition will be greatly appreciated. Thanks

Owning more than 1% and making over 150,000 makes one key.

By definition, a 5% owner is someone who makes more than 5%, so if you owned exactly 5% and made less than 150,000 you would not be key, unless you were an officer making 130,000