CLE401kGuy Posted December 20, 2011 Posted December 20, 2011 Client missed auto enrollment of several participants. The plan is cross tested, each participant is their own group and makes profit sharing contributions (2.5% to each participant). Provided that the non-discrimination testing is still satisfied, can the PS be 'shifted' to cover the QNEC and missed match (Formula is 25% up to 6%)? (All dollars in PS source would be shifted to avoid issues with cross test) Corrective allocation would be 1.5% QNEC + .75% match = 2.25%. Can a sponsor allocate a QNEC that is slightly greater than the amount required to make the correction? Would this be allowable? Any thoughts anyone?
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