1.401(a)(26)-7(c)

[Draper55]

The code section in the topic is with regard to a corrective amendment for 401(a)(26). It states that the retroactive amendment must be under the same conditions as 1.401(a)(4)-11(g)(3) thru (g)(5). I am puzzled what if any meaning 1.401(a)(4)-11(g)(3)(v)(A) should be given. It is titled "Corrective amendment for coverage or amounts testing". Since the testing at hand is for minimum participation, can this (v)(A) paragraph be ignored? I would think so but I am wondering if anyone else has given this further thought. Generally, a group of ees that satisfies 401(a)(26) may well not also satisfy 410(b) or 401(a)(4). Alternatively, what sense would it make for the additional accruals themselves to satisfy 401(a)(26)? That would seem to be an overkill.

[bvhea]

An amendment to correct a 401(a)(26) failure, still has to pass 401(a)(4) on a stand alone basis. In other words, the corrective amendment cannot discriminate in favor of HCE's. Of course, the entire plan must still pass 401(a)(4) taking the corrective amendment into consideration.