Hello out there. I am working on a plan that has 5 employees. The two HCE's defer and the three NHCE's do not. Are there any exceptions to passing the ADP test if only HCE's defer? I am hoping so.
Thank you!

I hope your plan is a safe harbor plan and the notice was posted timely... because otherwise you'll fail ADP.

if you are NOT a safe harbor plan, you may have a chance to pass on prior year testing. BUT, if that's the case, then next year the HCE's can't defer (except catch up).

if the HCEs are 'over the hill', "graying gracefully" or at least age 50, and the plan allows catch-ups then you could treat up to $5000 as such.
if first year of the plan and prior year tesing is used then you can use 3% for the NHCEs, but that would only work this year.

And don't forget to check the Top Heavy status of the Plan, which could trigger required contributions by the employer.