Common use of Current Year Testing Clause in Contracts

Current Year Testing. If elected by the Employer in the Adoption Agreement, the ADP tests in Section 15.04, 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 elect Prior Year Testing for a Plan Year only if the Plan has used Current Year Testing for each of the preceding 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 § 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 § 410(b)(6)(C)(ii).