Prior year testing & no match in prior year...

[Guest AlCal]

ER sponsors 401(k) plan with discretionary matching contribution and uses prior year ADP/ACP testing. The plan docs are Volume Submitter. For 2000 calendar PYE it was no match. ER wants to match for 2001. It is my understanding that under PY testing ER can not match in 2002 if docs are VS ( it seems that for prototype docs there is a break until GUST restatement).

Is there any way ER can make matching contributions without violating thr regs? And if ERtakes advantage of the last extended reliance year and switch to current year testing....would ER have to "stick" w/CYtesting?

Thanks....AC

[Guest stryan]

I beleive current year/prior year testing elections can be made independently for ADP and ACP. Therefore, you can still monitor 401(k) contributions based on PY testing and the discretionary match would be tested CY.