Any problems with this new comparability money purchase plan, 401(k) p

[John A]

Plan Design:

Money Purchase Plan and 401(k) Profit Sharing Plan

Money Purchase Plan Formula: 25% to HCEs, 3% to NHCEs, money purchase allocation to each participant will be reduced to meet combined plan 415 limit

Determination Letter for money purchase plan says that plan passes nondiscrimination testing on the basis of the 401(a)(4) general test.

Money Purchase plan document is silent on what to do if 401(a)(4) general test fails.

Letter from plan sponsor indicates that an additional profit sharing contribution has been allocated in the past when the general test failed.

Profit Sharing Allocation Formula: uniform % of recognized earnings.

Is there any compliance problem caused by reducing the money purchase allocation to each individual due to the combined 401(k) and money purchase 415 limit?

Is there a default of how to get a 401(a)(4) test to pass when the test initially fails, or does the document or an addendum have to contain language specifying how to correct a failing general test? Is this language unnecessary as long as the plan sponsor continues its practice of making a profit sharing contribution to get the general test to pass?

Do reallocated forfeitures in the profit sharing plan affect the 401(a)(4) general test?