"First year plan" rule for testing

[pbarrett]

If a new 401(k) plan is established 7/1/04, can you still use the first year plan adp non-highly compensated 3% deferral rate for testing? Would it need to be pro-rated down to 1.5%?? Would we need to make the plan effective 1/1/04 to use the 3% rule?

Any thoughts would be appreciated.