HCE determination for the first Plan Year

[flosfur]

If the Look-Back year is the 12 months period immediately prceeding the PY, in determining HCE for the first PY, can one use the first PY comps or must one obtain the compensations for the prior yr?

I would say yes, but some have siad that first PY comps can be used.

[wmyer]

You are correct; you MUST use prior year compensations -- there is no authority for using current year compensation.

[AndyH]

except that the old IRS' "substantiation guidelines" allow the use of the current year for testing purposes under certain conditions, but I don't think that has anything to do with whether or not it is the first year.