When using current year pay in calculating each participant's EBAR, in

[Guest JL]

I'm taking a "poll" -- When using current year pay in calculating each participant's EBAR, in cases where the cross tested contribution allocation is based upon post-entry pay only (this only affects each new participant's initial entry year calculation), would you also use the post-entry pay in the denominator for the EBAR calculation, or would you use the entire plan year's wages including pre-entry pay for the year. Use of post-entry pay seems to be supported under the 401(a)(4) regs (because the pay definition is tied to 414(s) compensation which allows pre-entry pay to be disregarded) but I seem to remember some issue a long time ago that caused practitioners to use the entire year's pay (which lowers the EBAR result). Thanks in advance for any comments!

[This message has been edited by JL (edited 12-01-1999).]

[Guest]

you are correct -

1.401(a)(4)-8(B)(2)(i) 'use avg comp'

1.401(a)(4)-3(e)(2)(ii)(A) defines 'avg comp'

'if you sue current year as the masurement period then you use plan year comp in place of avg comp.

1.401(a)(4) - 12 definitions: comp from date of participation is an acceptable definition of plan year comp.