Assumed 3% deferrals

[Guest CGBS]

The first plan year end was 12/31/99. We needed to use the assumed 3% deferral for NHCE'S to pass the test. For the plan year ending 12/31/2000 can I use current year data for testing? Thanks for any help.

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[Alf]

Yes. IRS Notice 98-1 states that a plan using the prior year testing method may adopt the current year testing method for any subsequent testing year without any notification or filing with the IRS.