Profit Sharing/401(k) Plan - Initial Plan Year

[Guest Donaldson]

We want to implement a profit sharing / 401(k) plan on 12/1/02 and have two questions. The plan will have a calendar plan year.

(1) Can the profit sharing allocation in the initial plan year (the month of December 2002) be based on total 2002 compensation (Jan 1 through Dec 31, 2002)? Does anyone know the authority?

(2) Could the CODA and/or profit sharing portions of the plan be made retroactively effective? Does anyone know the authority?

Thanks.

[Guest Donaldson]

FYI - I think the authority for the first part of the question is 1.401(a)(17)-1(B)(3)(iii)(B).