Separate application of top heavy rules to defined contribution plans covering excludible employees

(a) In general Section 416(c)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following: (C) Separate application to employees not meeting age and service requirements If employees not meeting the age or service requirements of section 410(a)(1) (without regard to subparagraph (B) thereof) are covered under a plan of the employer which meets the requirements of subparagraphs (A) and (B) separately with respect to such employees, such employees may be excluded from consideration in determining whether any plan of the employer meets the requirements of subparagraphs (A) and (B).. (b) Effective date The amendment made by subsection (a) shall apply to plan years beginning after the date of the enactment of this Act.