How is ADP and other testing done (what compensation is used) when eff

[John A]

If the initial plan year is the calendar year, but the deferrals were allowed starting March 1, is compensation for the full year used in testing, or is compensation from March 1 on used?

[Guest]

1.401(k)-1(g)2(i) says

use 414(s) compensation...an employer MAY, however, limit the period taken into account...to the PORTION of the plan year...in which the employee was an eligible employee