Safe Harbor NEC -- Compensation

[Guest SWH]

I have a new plan that is setting up profit sharing effective as of 1/1/08 and 401k as of 8/1/08. 3% SHNEC is going to be used as of 8/1/08. When calculating the 3%, do I use comp for entire year, or just portion of year from 8/1/08 forward? Having a "brain went on vacation" moment.

[pmacduff]

"what does the plan document say..." with regard to compensation for nonelective allocations or QNEC allocations?

[Guest SWH]

The safe harbor section of the plan refers me back to my general definition of compensation. Since the plan is effective 1/1/08, I have participants that entered on that date. However, the 401k portion is not effective until 8/1/08, so no deferrals before August.