ADP Test - Owner dies

[pensionnube]

Hello Guys,

I have another question. I am doing an ADP test for a year end 09/30/2014.

The only problem is the Owner has died. Now thats not the issue. The issue is he died 01/27/2014 and he only takes comp once a year at year end. The ownership was transferred to his niece shortly after his death which made her a higly. She defers 10% and the populous defers 5.27%.

Am i allowed to use him in the test even though he has zero comp? He technically was an owner in the plan year?

Please advise

[Lou S.]

Pretty sure the IRS position on this is no pay = no opportunity to deffer = not in ADP test.

[ETA Consulting LLC]

Using him would seem to be pretty aggressive. Math rules would state that a zero in the denominator is undefined. Since 0/0 is not defined, how could you use zero Compensation in the ADP test; your result in not defined.

Good Luck!