Is distribution of excess annual additions included in ADP test?

[Richard Anderson]

If excess annual additions are cured by distributing elective deferrals, are those distributed deferrals included in the ADP test? I'm inclined to think that the same treatment as excess deferrals would apply. Therefore, if the participant is a HCE the distribution would be included in the ADP test; if the participant is a NHCE, the distribution would not be included. Is that correct?

Also, is the distribution for excess annual additions included in the top heavy test?

[Guest PC]

Amounts distributed to correct excess annual additions are disregarded for ADP testing (HCEs and NHCEs). Treas. Reg. 1.415-6(B)(6)(iv). I don't know if the top heavy issue has ever been addressed.