Plan uses prior year testing, change to top 20% election

[Belgarath]

Suppose plan currently uses prior year testing. If they amend the plan this year (2014) to utilize the top 20% election, are those people who will no longer be HCE's due to the election still counted as HCE's for 2014 plan year testing, because they were HCE's for 2013? So that the amendment would have no real effect until you do 2015 plan year testing?

Or, can you count those people as NHC's for 2013, since you are doing "2014" testing?

I'm inclined toward the former...

[Lou S.]

You are doing 2014 testing, I see no reason why you wouldn't use the method in effect for the year year to determine 2014 HCEs. If your plan is amended before the end of 2014 to use the TPG for 2014 I would determine 2014 HCEs based on 2013 compensation AND in the top-paid group in 2013 (plus any 5% owners you may have who are not in in the TPG).