ADP Testing

[MBCarey]

From 1/1 to 7/31/2003, I had two employers who were part of the same plan.

Employer A sold Employer B and as of 7/31/2003 considered all the employees (participants) of B as terminated. Employer B then set up its own plan.

I tested Employer A and included the salaries & deferrals of Employer B thru 7/31/2003 in the year end testing.

I then tested Employer B using the salary and deferrals from 8/1 thru 12/31. Is this methodology correct? If so, what should I use in testing ADP , Prior or current year.

Plan A used prior year percentages and passed.

In tryng to use current year percentages Plan B does not pass for the short plan year.

Hope I haven't confused too much