one-to-one correction for failed ADP test

[AKconsult]

Rerunning 2011 ADP for a plan due to issues with ownership changes we weren't aware of. Long story, but ERISA attorney has advised we are to split plan into 4 separate ADP tests. 1 of the ADP tests is failing, other 3 are passing. However, I performed the testing by disaggregating the otherwise excludable nonHCEs. Obviously, corrections are being made more than 12 months after plan year-end. EPCRS states that plan may not be disaggregated into component plans for determining the correction for failure. ERISA Outline Book indicates the prohibition against restructuring is because the IRS doesn't want employer to reduce the amount of corrective distributions to HCEs and thus the amount of the one-to-one contribution for nonHCEs. QUESTION: Is the EPCRS saying that it is OK to disaggregate to run the tests, but if the test fails then I have to add back the disaggregated nonHCEs before I determine the refunds for the test that is failing (which is what I have always thought was the case...)? Or am I to understand that I can't disaggregate at all when I run the tests in the first place?

Thanks!!

[MWeddell]

The EPCRS doesn't prohibit you from using methods specified in the regulations at getting the ADP tests to pass. It only is relevant once there is an operational failure and you have exceeded the 12-month after the end of the plan year deadline in the 401(k) regulations for correcting a failed ADP test.

[Kevin C]

Can you elaborate on how the plan is being split into four separate ADP tests for what sounds like a single plan?