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Profit Sharing effective 01/10 with 401(k) provisions effective 08/01


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Guest Alex Calin
Posted

Existing PSP (or amended one) has plan year 01/01 to 12/31. 401(k)/401(m) provisions effective 08/01/99. For plan year 1999 can one consider for ADP/ACP testing only compensation from 08/01 to 12/31. Since the plan uses previous year NHCE deferrals it will help for next year HCE deferral since present yr NHCE deferral% will be greater. If yes, should plan docs provide for such? Can/must it be specified in the Adoption Agreement as a one time compensation definition for 401k/m provisions?

Thanx.

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