Union EEs in ADP test

[Guest Pat Metallic]

We have a 401(k) plan with common law employees and a couple of union employees. (Union employees are permitted to participate.) My understanding of the ADP test is that these 2 groups are tested separately. If that is accurate, the dilemma is that the 2 union employees are both HCEs. There are no union NHCEs. How does that affect the ADP test for union employees when there are no union NHCE ADPs to compare the HCE ADPs?

[WDIK]

1.401(k)-1(b)(2)(i)(B). [second paragraph]

[austin3515]

i.e., if there are no NHCE's, the union "plan" passes by default.

[WDIK]

i.e., if there are no NHCE's, the union "plan" passes by default.

Way to let the cat out of the bag!

[Guest Pat Metallic]

Thank you for your valuable input.