Pammie57 Posted February 15, 2017 Posted February 15, 2017 Plan started 07/01/2016; they are using the current year testing method for the ADP test. (per the document)....they have failed the ADP test based on current year actual data. Is there any way to use the assumption that the average ADP for NHCE is 3% and pass? Or is that reserved only for plans that use the prior year method for ADP non-discrimination testing? Thanks
Belgarath Posted February 15, 2017 Posted February 15, 2017 Right, you can't use it for a plan that uses current year testing.
John Feldt ERPA CPC QPA Posted February 16, 2017 Posted February 16, 2017 They could have executed an amendment to adopt prior year testing with the 3% option, but the signature execution deadline was the last day of the first plan year.
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