Qualifed Match ADP Test

[jmartin]

A plan has a qualifed match. As a result it is combined with 401k in the ADP Test. Historically the test has passed. Now the test fails and refunds will be taken. In the combined test, the refund is $8k. If I were to split the 401k and match separately (ADP and ACP Test), the refund would drop to about $5k.

Can we separate the 401k and match into separate tests this year for the sole purpose of reducing refund?

[Tom Poje]

does the document require the match to be used in the ADP test? I have seen documents written as such.

however, the regs only say

1.401(m)-2(a)(5)(iii) QMAcs used to satisfy the ADP test - QMACs that are taken into account for the ADP test are not taken into account in determining the ACP.

so again, unless the document is specific, you can use the match in any way shape and form you want - part in adp and part in acp test

[MWeddell]

Are you using the prior year method for NHCE averages? That could be a problem.