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Posted

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?  

Posted

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.

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