Prior Year Testing and QMAC's

[Guest Robin Vatalaro]

I know this has been addressed on the Boards but I am still confused. Fact pattern:

2000 uses current method. 2001 test uses prior year method. QMAC's were made for both years, and prior year method will be used 2002 and after as well, and QMAC's will continue to be made. The QMAC's are deposited w/ each payroll period.

If the 2000 NCHE ADP is 6% inclusive of the QMAC but 4.5% exclusive of the QMAC, is the 2001 HCE max ADP 6.5% (it's not 8% right?)?

For 2002 - if the 2001 actual NHCE ADP is 4.7% inclusive of the QMAC and 3.2% not including the QMAC, then is the max HCE ADP for 2002 5.2%? Or is it 6.7%?

I know the QMAC's cannot be doublecounted, I'm just getting lost in the mechanical details and would appreciate some verification or correction. Thank you.