ADP - changing methods
Posted 23 September 1998 - 03:07 PM
Posted 29 September 1998 - 06:08 PM
Posted 06 October 1998 - 04:14 PM
Posted 16 November 1998 - 05:13 PM
Is 1999 then the lock-in year, so that if a plan uses current year method for 1999 they can't switch to prior without a change in method? Are most people using a "best of" then for 1997 and 1998? Thanks for any input.
Posted 16 November 1998 - 07:18 PM
I think Notice 98-1 clearly allows one to switch from current to prior year method and vice versa during the remedial amendment period, so I don't think the anti-abuse provision is intended to modify that degree of flexibility.
Posted 16 November 1998 - 08:24 PM
Based on your comments, 1999 would not be the lock-in year for Dawn; 2000 would be.
Do you agree?
Posted 17 November 1998 - 10:03 AM
Posted 17 November 1998 - 11:24 AM
What are my options with respect to testing in 2000 if I use the current year method in 1999?
What are my options with respect to testing in 2000 if I use the prior year method in 1999?
Posted 17 November 1998 - 03:44 PM
If you used current year in 1999, and had never used prior year, you can switch to prior year or continue with current year.
If you used current year in in 1999, but used prior year in a previous year, you will need use current year for five years (begining with the first year you used current year. For example, if you used prior in 1997 then current for 1998 and 1999, you would be locked into the current year method through the 2002 plan year.
If you used prior in 1999, you can use either current or prior in 2000.
As always, your document must reflect your method.