Common use of Special rule for first Plan Year Clause in Contracts

Special rule for first Plan Year. If this is a new 401(k) Plan, the testing method selected in subsection (a) above applies for purposes of applying the ACP Test for the first Plan Year of the Plan, unless designated otherwise under this subsection (b). If the Prior Year Testing Method applies, the ACP of the Nonhighly Compensated Employee Group for the first Plan Year is deemed to be 3%. (See Section 6.02(a)(3) of the Plan.)

Special rule for first Plan Year. If this is a new 401(k) Plan, the testing method selected in subsection (a) above applies for purposes of applying the ACP ADP Test for the first Plan Year of the Plan, unless designated otherwise under this subsection (b). If the Prior Year Testing Method applies, the ACP ADP of the Nonhighly Compensated Employee Group for the first Plan Year is deemed to be 3%. (See Section 6.02(a)(36.01(a)(3) of the Plan.)