How will the prior year/current year elections be affected if an emplo

[Guest Phil Schwartz]

If an employer adopts a plan and elects prior year testing this year, and in November gives notice to qualify for safe harbor in 2001, and then in July 2001 decides to opt out of the Safe Harbor and be subject to testing, which would be current year, is the employer now stuck with current testing for the next 4 years?

[This message has been edited by Phil Schwartz (edited 05-16-2000).]

[Guest Rick Butler]

IRS Notice 2000-3 does not change the rules on current/prior year testing. You would be stuck with current year for 2001 and the following 4 unless you obtain IRS approval.