A top-heavy plan must also provide a special vesting schedule: 3-year 100% vesting schedule,or 6-year graded vesting schedule.(Qualified vs.Nonqualified Plans)

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This statement is true. A top-heavy plan, which is a qualified retirement plan with more than 60% of the plan assets belonging to key employees, must provide a special vesting schedule. This special vesting schedule requires either a 3-year 100% vesting schedule or a 6-year graded vesting schedule. Nonqualified plans may have different rules regarding vesting schedules.

A Top-Heavy Plan Must Also Provide a Special Vesting Schedule