401(a)4 failure

[Guest mparker2028]

Plan Year 2004

calendar year

t/h 401k no match

besides the fact that it's already too late - client in big trouble with various agencies - just a general question really

need small qnec to pass

but also need th min 3%

allocation for nche = QNEC (i.e. 1% of pay) + 2% top heavy

can pass (a)4 with QNEC but can't pass without

can we fix it by giving a full 3% top heavy minimum plus qnec? then plan passes

I know this seems like a stupid question but I've been sitting here so long I can't think straight anymore

thanks for your help

[Tom Poje]

if I understand your question correctly are you asking can I give both a QNEC and a top heavy?

yes, there is no requirement that a QNEC be used toward top heavy. that is simply a 'fringe extra' that a QNEC may do double duty - be used for testing and also count toward top heavy

[austin3515]

Why can't you pass a4 without the QNEC? Are there a lot of non-key HCE's? Did you try cross-testing? mputing disparity? Don't seem to be any gateway issues... Or does the plan inlcude key's for the THM?

[Guest mparker2028]

keys are included in thm

[AndyH]

Have you tried general testing including cross testing? It has been said that the general test never fails. If you want to lay out more details we could explore the feasibility. It sounds like your best answer.