Union 401(k) and ADP testing

[rcline46]

If a 401(k) plan is established via a collective bargaining agreement, is it necessary to do ADP/ACP testing?

If necessary to do the testing, what do you do if it fails? If the plan were a DB or DC plan you have the 415 limits, but you do not test discrimination under 401(a)(4) because the benefits are negotiated.

Are there any cites pro or con?

[Guest Midas]

ADP is required. ACP is not.

If ADP fails, it is handled tha same way as a non-union plan. Though a collective bargained plan is deemed to satisfy 401(a)(4), it will still suffer the consequence of becoming a nonqualified cash or deferred arrangement if ADP failures are not timely corrected.

[JanetM]

Keep in mind if you have no HCEs you automatically pass.