Current Year ADP/Prior Year ACP/shift MUAT?

[Guest marie kelly]

Can a plan use Current Year ADP testing, Prior Year ACP testing, than use a shift from Current year to Prior Year to pass Multiple Use? 12/31/2000 test. Individually Designed Doc, not updated for GUST yet

[Guest]

most likely not. one argument being that the deferrals relate to current 401(k) monies, and are therefore used in the 'current' coverage test, for lack of a better term. now you are shifting them and using them in a 401(m) that is using 'prior' coverage test. aggregating apples and oranges so to speak. For a fuller argument against shifting this way, see The Erisa Outline Book page 11.176 5th edition.