FAQ 149: PLANSPEC--Coding a short plan year


How does one deal with a short plan year in ASC? I have a plan who's prior year end was 9/30/2018. They now are in a short plan year situation from 10/1/2018 - 12/31/2018, but I can't seem to find where to make all the changes for things like the vesting to update properly.


There are a few things that you will need to change in the plan specs:

1) On the Plan Identification (ID) screen, enter "9/30/2018" in the PYE Hist 1 field. (Hit the F1 key while on this field if you want to read the on-line Help for this field.)
2) On the BENLIMIT screen, user can code the "Prorate for Short Plan Yrs" option using "Y - Round to Nearest Month" or "Y - Round up to Next Month" so the system can prorate the plan's Compensation Definition and 415 dollar limit.
3) In the source 2 specs, click on the "Show Parameters" button and enter the reduced taxable wage base here if the plan is integrated.

That should then take care of the comp limits, allocations and vesting.