first year testing

[Earl]

First year of deferrals, 9/30/03. Plan fails ADP.

I want to use a QNEC.

Can you use the deemed 3% + QNEC or are you forced to use actual results + QNEC?

QNEC will be deposited post 9/30/03 so for 2004 I can't use actual + QNEC for 2004 ADP limit as prior year testing, is that correct?

Can I add the QNEC to the 9/30/04 year end deferrals for prior year testing of 9/30/05?

Thanks

[Archimage]

I am assuming you selected prior year testing for the plan year ending 9/30/2003. Since the NHCEs ADP was deemed to be 3% you cannot use QNECs as a method of correction unless it was deposited prior to the end of the plan year.

It is Friday and my brain is fried so I cannot even follow your next two questions.