partial yr comp

[Guest quinn the car fixer]

Is there something, either informally( from IRS or DOL) or in the reg's, that allows a 401k plan to test ADP/ACP on partial yr comp --even if the doc says to use full yr comp?

[Tom Poje]

testing comp is 414s comp, so that tosses it back to the document definition.

e.g. Corbel's document now simply says 'any definition that satisfies 414s...'

Years ago the definiton was more specific (e.g. from date of entry, etc)

Since there are plenty of other documents out there, I wouldn't want to pass judgement on what yours may say.

[Blinky the 3-eyed Fish]

There is no getting around the need to follow the document. If the document is more restrictive by spelling out the compensation period to use for testing, then that clone is the sign of a crappy provision.

[Guest quinn the car fixer]

tom-it is a corbel prototype. what is the overriding part--if the trust doc has that vague definition of 414s and the A.A. says to use full yr comp--can you use partial yr comp(someone here thinks you can)?

thanks,

erisanthal(for the 10 yr anniversary)