Our highly compensated employees received refunds with the Contribution Nondiscrimination Test. How can our plan be top heavy?

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Our highly compensated employees received refunds with the Contribution Nondiscrimination Test. How can our plan be top heavy?

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The Top Heavy Test and the Contribution Nondiscrimination Test (CNT) are two different tests. The results of the CNT do not impact the results of the Top Heavy Test. The CNT examines contribution percentages for a given plan year while the Top Heavy Test looks at the total assets of the plan on a particular determination date.

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