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Is this a DC plan or a DB plan? Also, he was working for 5 days after he died???

Well for 2023 you can test otherwise excludable separately so you shouldn't have an ADP testing failure. For 2023 you'll need at least a top heavy minimum for the employee and a QNEC for the missed deferral opportunity. But you should be able to self correct under recent IRS guidance and the most recent EPCRS procedure. For 2024 the solo-k should just be restated, no need to open a 2nd plan. Look at the EPCRS procedure for any additional missed deferral opportunity than may be required. You are also going to have 401(k) testing and TH minimum so you might want to consider adding a 3% safe harbor non elective prior to November 30.

I realize this is off topic from your question. But there is a lot going on here. If you haven't put a lot of thought on the beneficiary of the beneficiary question I would recommend going back to it. The late wife's beneficiary election in my mind is for her account as a participant and most likely says has language making it clear the election is for her account as a participant. I am amazed at how many plans that do say if a beneficiary can make a beneficiary election and I on a regular basis run across plans that clear say a beneficiary can't name a beneficiary for some odd reason. I don't get why you would put the restriction in a plan but I see it. So the kids might end up with the money as beneficiaries or via the estate but the full repercussions of which path can be different. I wouldn't assume figuring out who the beneficiary of a beneficiary is real easy to determine. Maybe you already chased this down if so ignore me.

See how friendly actuaries are. ☺️

Yes.