Failed ADP and 401(m) Coverage

[Guest Lawrenceg]

Plan fails ADP and needs 2% to pass. Plan also fails 401(m) coverage due to a 1000hr+ last day requirement. The ratio is 38%.

Question, is there one correction/contribution that can be made to satisfy both the 401(m) coverage failure and the the ADP failure?

[Leopurrd]

I don't think we can really answer based on the amount of info you've given???

Since you don't pass ratio I would try the average benefits test and the 2% QNEC would help the ABT.

If your ratio fails that much you may want to ask why so many people did not receive a match (partial term?) or perhaps change the doc requirements.....

[PLAN MAN]

If the plan fails minimum coverage for 401(m), how did you run the ACP test? Did you include a QNEC for those employees excluded under the plan's allocation provisions?