ADP Test and Allocable Earnings

[Guest AJM 34]

Can someone tell me the formula used to determine the Allocable earnings for the Plan year for a failed ADP test.

I have the following information, but not quiet sure of the formula:

Total Earnings, Opening Balance, Contributions, Withdrawals, & Refund.

Thank you, AJM

[Tom Poje]

I just attached the 401k regs on another thread (adp refunds and 401(g) refunds). there are clear examples on page 120 - 121 (assuming your copy would print the same as mine.) don't forget, this year you also have to include gap period income. that is described in greater detail on page 115.