Running the Top Heavy Test task triggers the software to calculate and determine the Top Heavy Status for the following plan year. The test uses balances as of the end of the current plan year, the determination date.
Possible reasons for a zero balance test are:
- Transaction batches have not been added or have been added but not posted
- The incorrect selection made for ‘Transactions to use when calculating participant balances:’ in the Top Heavy parameters, this should be set to ‘All transactions other than ending balance’
- The Top Heavy Determination Override is set to Yes - this is in the top heavy test parameters and should only be used when you want to override the system calculations on the plan's TH status and indicate yourself whether the plan is top heavy or not.