Cross testing w/w/o QNEC

[Guest mparker2028]

Doing a projection

Top heavy 401k

QNEC very small .733% to NHCE

8 NHCE - 3 terminated - no top heavy for these 3 but top heavy for remaining 5

keys also get 3% min - all benefiting

Pass (a) 4 on allocations basis with top heavy and QNEC

Without QNEC fail on allocations basis- HOWEVER, if I test onan accrual basis, 3 that term'd aren't showing up in gateway and plan passes 401(a) 4 on accrual basis

Is this possible and allowed?

[AndyH]

if the plan does not have langage prohibiting this testing, i.e. includes failsafe language, this sounds ok to me.

[Guest mparker2028]

What kind of language do you mean?

If it helps, it's a Corbel VS

[AndyH]

Failsafe language might say, for example, that in the event that the ratio/percentage test is not satisfied, the employer is obligated to do X,Y, Z (make a contribution to all NHCEs to pass r/p for example) so that the ratio/percentage test is safisfied. Notice you've got a 62.5% r/p so this would be a candidate.

But I don't think the Corbel VS would have this.