Key Determination - Initial Plan Year

A plan is effective for the first time on 8/1/2020. When determining Key status for Officers and greater than 1% owners for the initial plan year, what compensation is used? 

1/1/2020 - 12/31/2020, or 8/1/2020 - 12/31/2020?  

Looking at language in a pre-approved document, it says annual 415 compensation, so I would say you need to look at the entire year, but you should check the 416 regulations for certainty.

2 hours ago, NW529 said:

A plan is effective for the first time on 8/1/2020. When determining Key status for Officers and greater than 1% owners for the initial plan year, what compensation is used? 

1/1/2020 - 12/31/2020, or 8/1/2020 - 12/31/2020?  

 

The 1.416 Treasury Regulations require you to use 415 annual compensation-- 1/1/2020 to 12/31/2020.