compensation

[mehmgo]

This is a calendar year plan. For ADP/ACP testing can a plan use participation wages even though the plan document uses full year wages for everything. I know we can use different types of compensation for non disc but was not sure if this would be an option to use participation veres full year.

[ETA Consulting LLC]

Typically, you may use any definition of Compensation that satisfies 414(s) for testing provided the document does not preclude using it. When you use that definition, however, you must use it for all testing purposes.

Good Luck!

[QDROphile]

You also have to follow plan terms. You hope for a a provision that allows a choice of any permissible definition of compensation for testing.

[Tom Poje]

for example, here is sample language from a document (so unless your document is extremely restrictive...)

1.36 "414(s) Compensation" means Compensation as defined in Section 1.14. However, the Employer may operationally elect to use any
other definition of compensation for 414(s) Compensation provided such definition satisfies the nondiscrimination requirements of Code
Section 414(s) and the Regulations thereunder. The period for determining 414(s) Compensation must be either the Plan Year or the
calendar year ending with or within the Plan Year. An Employer may further limit the period taken into account to that part of the Plan
Year or calendar year in which an Employee was a Participant in the component of the Plan being tested. The period used to determine
414(s) Compensation must be applied uniformly to all Participants for the Plan Year.