Calendar Year §401(k) plans

[Guest cjk]

My client is interested in knowing the percentage of §401(k) plans that are operating on a calendar year plan year. I have provided anecdotal statistics based on my personal observations (90%+) but the client would like something more definitive when presenting to "higher ups". Does anyone know of any source for an accurate answer to my client's question?

[stephen]

Why does it matter?

It is a good idea to run the plan on the same tax year as the employer and have the limitation year coincide. There may be certain instances when it is advantageous to do otherwise.

But to me it's a better question to ask how many plans have the same year end as their employer's tax year. In my case it's been about 99%.

[Guest cjk]

The plan is question has 100,000+ participants. They will be amending the plan to allow for "catch-up" contributions and are considering ways to make the entire process more administratively feasible. The Limitation Year will be amended to comply with the plan year. The fiscal year coorespondence is not a major issue for the client.