Changing ADP Testing btwn current & prior years

I can't recall if there is a timing restriction for switching a plan's ADP/ACP test method of using current or prior plan year.  eg can the selection be made prior to the end of the plan year for the current plan year?

I believe that nothing has changed since the attached ASPPA ASAP was written. The short answer is "before the end of the year in which it is effective" with a caveat that you should consider anti-cutback possibilities. There are also limitations on how frequently you can go back and forth (I think) which are not discussed.

06-07 When Do You Have to Amend to Change 401(k) Testing Methods.pdf

I think you need the change before the end of the plan year.

I think the rule on time limit Bird mentions was maintaining the current method for 5 years before you can switch. Though I think that was if you wanted to switch to "prior year", I don't think the same restriction applied to changing to "current year".

Thanks Bird and Lou.

We've already looked at the implications of current and prior year methods for current year's testing to ensure there will be no cutback.

Incentive for doing this is based on changes in employee population that will begin to affect next year's test.