Correcting adp failures

[Guest jae3207]

Under Rev Proc 2003-44, it states that " Under this correction

method, a plan may not be treated as two separate plans, one covering otherwise

excludable employees and the other covering all other employees (as permitted in

§ 1.410(b)-6(b)(3)) in order to reduce the amount of QNCs."

If your plan's coverage and adp tests were originally run using the permissive disaggregation, failed adp testing but corrections were never made, does the plan sponsor have to retest the plan without permissive disaggregation and allocate the corrective QNEC to all eligible nhce's? Or since the operational failure is based on original testing results, can the corrective QNEC be allocated to only those that were eligible for the "test" that failed? If the plan had corrected it originally with a QNEC, these would have been the only eligible employees, so I don't understand why the IRS would state that you'd have to include a group of employees who were not included in the original testing poplulation.