top-heavy plan
Defined in 1 place of the United States Code.
Except as provided in subparagraph (B), the term “top-heavy plan” means, with respect to any plan year—
(i) any defined benefit plan if, as of the determination date, the present value of the cumulative accrued benefits under the plan for key employees exceeds 60 percent of the present value of the cumulative accrued benefits under the plan for all employees, and
(ii) any defined contribution plan if, as of the determination date, the aggregate of the accounts of key employees under the plan exceeds 60 percent of the aggregate of the accounts of all employees under such plan.
Source
- 1994–present26 U.S.C. § 416Internal Revenue Code · Special rules for top-heavy plans · for purposes of this section