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Posted

We have been asked to prepare a Form 5500, due next week.  The ADP test was not performed and we do not have enough information to complete the test.  If we complete the IRS compliance questions on the return with a footnote "Prior year test - test incomplete" will the return be rejected?

Posted

The compliance question on the 5500s asks:

"If this is a Code section 401(k) plan, check all boxes that apply to indicate how the plan is intended to satisfy the nondiscrimination requirements for employee deferrals and employer matching contributions (as applicable) under Code sections 401(k)(3) and 401(m)(2)."

It does not ask if the plan passed the test.

Check the box indicating what the plan document specifies as the testing method - safe harbor, prior year, or current year.

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