I don't think this worked the first time - sorry if this is a duplicate...

New Plan effective 01/01/01
Document states Current Year testing method

Plan fails ADP/ACP/Multiple Use on Current Year basis, but passes on Prior Year basis.

After reading prior messages and IRS Notice 98-1. It seems as if for the first plan year you can test using Prior Year, then going forward use Current Year method.

I think my problem would be that the document says to use Current Year testing method and if I change to Prior Year I'm stuck for 5 years.

Any thoughts or better interpretations - please reply.

Notice 98-1 imposes no restrictions or requirements on converting from prior year testing to current year testing, there are only limitations on switching from current year to prior year.

What about amendments? Would I have to do a plan amendment stating the change from current to prior for the 2001 plan year?