A calendar year 401(k) plan has its December, 2001 401(k) contributions deposited in January, 2002. Must these contributions be tested in the 2001 ADP test, or can they be tested in the 2002 ADP test?

I've always assumed that they get tested in the 2001 test, but what about so many daily and bundled providers that do plan admin. on a cash basis? If you are recordkeeping on a cash basis, does it make sense to test on a cash basis as well? I doubt it, but I was hoping someone could confirm.

Thanks

they count in the year made, not deposited.

as for your comments on daily, a company like Manulife holds off reporting the last quarter of data until the December deferrals come in, so they get counted in the correct year- assuming of course they are timely deposited. I don't know what other companies do...most of the plans we process like this are through Manulife