Plan Termination and ADP/ACP test

[buckaroo]

Client has decided to terminate their 401(k) plan as of 10/31/2007. They are in the process of adopting an amendment/resoltuion to terminate and to cease any 401(k) deferrals. They have asked us to process the ADP test immediately, utilizing the data through 10/31/2007. Since the amendment resolution does not make a short plan year, can the testing be done utilizing the data through 10/31/2007? Or do we have to wait for 12/31/2007? Of does the client have the option?

Any advise would be greatly appreciated.

[Tom Poje]

1.401(k)-2(b)(v) says 'in the complete termination of the plan...correction must be made as soon as feasible...but no later than 12 months after the date of termination.'

so I'd say you use comp through date of termination not end of the year.