For an initial plan year (say, 2002), I am fairly certain that you look at 2001 compensation to determine who is an HCE. Or do you rely on current year data? If the former, I assume that the 414(q) limitation for the lookback year (2001) would apply and not the limitation in effect for the test year (2002).

in your example anyone who made over 85,000 in 2001 would be an hce in 2002.
(of course if top paid group election was made this might exclude some ees who made over 85,000. you never rely on current year data

Thanks, Tom. That's what I suspected.