Guest pjg Posted March 24, 2003 Posted March 24, 2003 Plan Sponsor failed to make ADP refunds for 2001 calendar year by Dec. 31,2002. 2001 was the first plan year and the 3% first yr (prior year) was used for the 2001 ADP test. (They resisted but are safe harbor now) If they make the 1-1 correction who should share in the QNEC??? The way I understand it- if the ADP refunds were based on prior yr NHCE's it is the prior year NHCE's (who are still employed) that share, but the plan did not exist in the prior year (2000)? In addition there may not be any NHCE's who would have been eligible for the plan in 2000 that are still employed, even if it existed. What do you think? Should we allocated to the 2001 NHCE's?? This is a very small doctor group.....(but you probably guessed that already).
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