In running the 410b test on an annual basis it fails. Is the snapshot testing method available?
If it's not available and the employer has to make an employer contribution are these their correction options:
1) Make a PS contribution to the covered NHCE's which allows the plan to pass the ABT. If they are making a QNEC because of a failed ADP test, can the QNEC plus the regular PS be considered for the ABT or only the PS contribution?
2) Though the employer wouldn't like it, the cheaper route would be to give the non-covered NHCE's from the other company a QNEC in the amount of the covered NHCE's average deferral percent, which is only 1.87%.
Other considerations? Thanks!!
Edited by M. Martin, 10 March 2007 - 05:30 PM.