Employer sponsors a calendar year profit sharing plan and decides to add a 401(k) feature mid-year (8/1/00). In calculating year-end match and ADP, does employer use compensation only from 8/1 throguh 12/31? Is there guidance in the 401(k) regs? Thanks

I think that reg 1.401(k)-1(g)(2) gives you the ability to use either the whole year or the 8/31/to 12/31 portion.

Also, double check that your plan document doesn't require that you use the full 12 months' worth of compensation or have it amended to provide the flexibility that RCK points out.

Assuming that the document requires the use of full plan year compensation, could it be amended retroactively to provide for that flexibility in 2000?