Definition of Comp failed

[30Rock]

A 401k plan failed compensation ratio testing and the general test due to the exclusion of overtime. This was for plan ending 6/23/2009. Plan is now correcting by preparing retroactive amendment to add back the overtime and provide the make-up nonelective contributions. What type of amendment is this? Is it a 401(a)(4)-11g amendment that must be done within 9 1/2 months? Does the group that is receiving the make-up contributions have to be named, with dollar amount of contribution stated, or can the plan's definition of comp just be retroactively amended with a statement that missed nonelective contributions will be made to all NHCE's for example?

Thanks!

[Tom Poje]

more specific info needed, you merely said plan failed compensation test.

lets say I alloacted a 5% profit sharing to all employees based on comp excluding bonuses.

failed comp test.

so now I run the nondiscrim test using the 5% alloaction but using total comp for testing comp. might still pass testing, simply not enough info.

if plan fails at that point, then yes, you have 9 1/2 months after plan year end to fix, and can name specific people to receive enough extra contribution to pass nondiscrim testing.

[30Rock]

Thanks Tom, you got it!! My first sentence said the plan failed comp ratio and general test.