AmyETPA Posted April 28, 2022 Posted April 28, 2022 New 401k plan. Effective Date of plan is 1/1/21, adopted in Aug 2021 so deferrals began in August. Is it permissible to calculate the ADR using the full year wages?
Bri Posted April 28, 2022 Posted April 28, 2022 Yes, unless you have a weirdo plan that defines the testing compensation explicitly as something else. If your plan just says "anything satisfying 414s" then full year pay is certainly compliant along those lines. Lou S. and Mr Bagwell 2
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