HCE Top-Paid Group Election

[Guest Yolanda]

I have a client who would like to make the top-paid group election for 2012. Is it too late? Is this a "discretionary amendment" that has to be adopted before the end of the year in which it is effective? That seems silly, since nondiscrimination testing (in this case ADP/ACP test) is done after the end of the year, and it only after testing is done that we know whether we need to make the election or not. However, I cannot find any guidance to the contrary.

[PensionPro]

Yes, too late for 2012. It is a discretionary amendment.

[BG5150]

Top paid group doesn't only apply to the 401(k) plan. It applies to all plans of the employer.