Top 20% election

[nancy]

I have a client who has been told by their attorney, that in the first plan year they can make two separate top 20% elections. They are going to make an election for the 401(k) test and not make an election for 410(B) purposes. Is this possible? I thought if you made the election it applied to all discrimination testing. I was not aware of an exception in the first plan year.

[Ervin Barham]

I am not aware of any exception. I don't have a cite as my information came from a recent seminar. It was noted that the 20% election applied to all plans of the employer.