Topic Archive: Lookback Year

Short Plan Years... Lookback Years... What (and When) Are They and Why Do I Care?

DWC | 02/11/20

Facts

My company started a brand new 401(k) plan last year.  We didn’t start the plan until July 1, and since we operate on the calendar year, our first “year” of the plan will only be the six-month period from the start date through December 31, 2019.  Now, our TPA is asking us for the compensation we paid to each of our employees during the lookback year (whatever that is) so that they can determine who are our highly compensated employees.

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