Common use of Current Year Testing Clause in Contracts

Current Year Testing. If no election is made by the Employer in the Adoption Agreement, or if so elected by the Employer in the Adoption Agreement, the ADP limits in (1) and (2), above, will be applied by comparing the current Plan Year’s ADP for Participants who are Highly Compensated Employees with the current Plan Year’s ADP for Participants who are Non-Highly Compensated Employees. Once made, the Employer can switch to Prior Year Testing for a Plan Year only if the Plan has used Current Year Testing for each of the preceding five (5) Plan Years (or if lesser, the number of Plan Years the Plan has been in existence) or if, as a result of a merger or acquisition described in Code Section 410(b)(6)(C)(i), the Employer maintains both a plan using Prior Year Testing and a plan using Current Year Testing and the change is made within the transition period described in Code Section 410(b)(6)(C)(ii). Contributions taken into account for a Plan Year must be allocated to the Participant’s account on a day within the Plan Year.

Current Year Testing. If no election is made by the Employer in the Adoption Agreement, or if so elected by the Adopting Employer in the Adoption Agreement, the ADP limits ACP tests in (1this Plan Section 3.14(A)(1) and (2), above, will be applied by comparing the current Plan Year’s ADP ACP for Participants who are Highly Compensated Employees for each Plan Year with the current Plan Year’s ADP ACP for Participants who are Nonnon-Highly Compensated Employees. Once an election to use current year testing is made, the Employer can switch to Prior Year Testing elect prior year testing for a Plan Year only if the Plan has used Current Year Testing current year testing for each of the preceding five (5) Plan Years (or if lesser, the number of Plan Years the Plan has been in existence) or if, as a result of a the merger or acquisition described in Code Section 410(b)(6)(C)(i), the Employer maintains both a plan using Prior Year Testing prior year testing and a plan using Current Year Testing current year testing and the change is made within the transition period described in Code Section 410(b)(6)(C)(ii). Contributions taken into account for a Plan Year must be allocated to the Participant’s account on a day within the Plan Year.