combining ADP/ACP to pass test

[KoolLady4]

I just received the year-end info from a client and there was a re-hire that I hadn't shown in the ADP test during the year.

Of course now the test does not pass! I think that I remember reading that I can combine the deferrals and match to test them combined, can't I? Kind of like a QNEC? The match is fully vested and goes to all who defer, regardless of hours or termination.

Thanks.

[Tom Poje]

well, you are thinking of a QMAC.

you can't simply treat a match as a QMAC unless the document permits QMACs.

There is a difference between the two, even if the match is always 100% vested - the distribution rules being the major difference.

if test is close to passing, you might try testing comp = comp - deferrals (again providing definition of 414(s) in the document allows it)

[KoolLady4]

Thanks Tom, I will give it a try.