DB-DC Combo Test

[JAY21]

Existing PS plan was sole plan for plan year ended 6/30/06. It then changed it's plan year for a short plan year 7/1/06 - 12/31/06 to match a change in the company's fiscal year. A new DB Plan was then adopted for 12/31/06 with an effective date of 1/1/06. Since both DB and PS plan have the same plan year end I believe I can permissively aggregate them. However, can I only use compensation and contributions from 7/1/06-12/31/06 for the DC side given the short plan year end ? Thanks for any thoughts/opinions.

[JAY21]

hmmm......Treas. Reg. 1.410(b)-7(d)(5) states they must have the "same plan year". It doesn't state "same plan year end" so maybe permissive aggregation isn't available here given the lack of a 12-month period in the plan year of the PS plan. I was hoping for a way to still aggregate them but maybe it's not looking too good.

[AndyH]

Not looking too good, IMHO.