Prior Year Testing / Permissive Disaggregation

[fiona1]

For the 12/31/02 ADP/ACP test, we did not disaggregate the employee's who did not meet the statutory age/service requirements. The test was done using the total group.

For the 12/31/03 ADP/ACP test, we'd like to disaggregate. However we use the prior year testing method. What percents do I use for my prior year test percentage?

[Guest ERIC STRAND]

I don't see why you couldn't revise the prior year test disregarding the otherwise excludable NHCE as per 401k3f. You should then be able to use the revised lead-in numbers in the following year using the prior year method.