Guest Phineas Posted October 28, 2011 Posted October 28, 2011 If a company begins 10/1/11 and their 401(k) plan also begins on the same date, but has a 12/31 year-end date, is that still considered a Short Plan Year?
Lou S. Posted October 28, 2011 Posted October 28, 2011 Yes, short year. You have no history to go retrocative adoption to 1/1. A company can't sposor a plan proir to its existance as far as I know.
12AX7 Posted October 28, 2011 Posted October 28, 2011 Why couldn't a plan sponsor adopt a plan retoactively, even if before it existed? I believe there's an example in the ERISA Outline Book. You could always file for an FDL if not certain. I never liked short initial plan years because of the prorated limitations.
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