ADP Testing

[Guest ladybug61]

Hello -

I have made the necessary refunds recommended by our TPA with regards to a failing ADP test. When you make these adjustments the net change to our HCE ADP % doesn't equal the corrective % action recommended. It is my understanding this situation exists because the refunds are distrusted to the highly compensated with the highest contribution amounts. I am concerned about being in compliance with IRS standards relative to passing the test? According to our TPA as long as the corrective action is taken we have met our requirements. Is this true??

[Mike Preston]

Yes.

[Guest ladybug61]

Thanks Mike!!!!