Adoption of Cross-Testing Amendment

[Guest HD WILLIAMS]

One of our clients is interested in doing cross-testing for 1998. I am of the understanding that it is too late for 1998 and that the client needs to adopt an amendment to do cross-testing for 1999. Am I correct is this assumption? Any help would be appreciated!

[richard]

Assuming you client has a calendar year 1998 plan year, they cannot change the allocation formula after December 31, 1998.

In your situation, it sounds like they have a flat or integrated or some other allocation formula for 1998, and they would like to change it (for 1998) to something else that requires cross testing to pass the nondiscrimination rules. They cannot do so after 12/31/98.

So, you are correct. Sorry.