ADP question

[Guest Gibson]

Employer sponsors a calendar year profit sharing plan and decides to add a 401(k) feature mid-year (8/1/00). In calculating year-end match and ADP, does employer use compensation only from 8/1 throguh 12/31? Is there guidance in the 401(k) regs? Thanks

[RCK]

I think that reg 1.401(k)-1(g)(2) gives you the ability to use either the whole year or the 8/31/to 12/31 portion.

[MWeddell]

Also, double check that your plan document doesn't require that you use the full 12 months' worth of compensation or have it amended to provide the flexibility that RCK points out.

[Guest Gibson]

Assuming that the document requires the use of full plan year compensation, could it be amended retroactively to provide for that flexibility in 2000?