ADP or 415 Correction

[Guest saotampa]

We have a client that has an ADP test failure for 2006. The HCE participant will have a 415 violation because he deferred $15,000, received a match of $15,000 and they have a money purchase contribution which totals $22,000 for him. He is under 50 so nothing can be recharacterized as catch-up. The money purchase contribution has not been funded yet. Can I refund the $4000 for the ADP correction, reduce his match to $10,996 (same as deferral after correction) and use the extra $4,000 credited to his match acct as a portion of the money purchase due to him? I have not been able to find anything that shows which correction comes first and if there is a 415 violation. Just curious if my creative accounting would fly. Thanks for any input.

[Guest fender5150]

Regardless of the ADP failure; can total benefits exceed $45,000 for any employee? I'm counting 15,000 for the deferral, 15,000 for the match, and $22,000 for the Money purchase contribution.

Please forgive the neiphite question. I'm fairly new to this.