402(g) Excess in ADP test?

I have an HCE with a 402(g) excess of $500 for 2021 (he deferred $20,000)

And I have a NHCE with a 402(g) excess of $135 (he deferred $19,635)

Neither catch-up eligible.

I thought you kept the excess in the ADP test for the HCE and removed it for the NHCE.

For some reason Relius is removing it for both.  I just want to make sure I'm understanding the rules  before I start bugging them.

I agree. See 1.401(k)-2(a)(4)(iii) and (a)(5)(ii).

I figured it out.  It's a relius quirk...

Can I add more questions to this message, please?  Failed ADP test with refunds, all completed prior to March 15th.  Non-HCE just "learns" that he maxed his deferrals under his prior employer's plan during 2021.  The $14k he deferred to this plan is now a 402g excess.  Are his deferrals eliminated from the ADP test thereby causing more failure = greater refunds? We believe the reg quoted above alludes to how you handle the excess deferral in the same plan.  But how do we treat the excess deferral in this situation when another employer is involved?  This plan will issue the 402g refund, fyi.

TIA

I'm not sure that situation is contemplated by the Regs, if it is I have not seen it. I don't know if this is the correct answer but if it came up in one of our Plans, we would issue the requested 402(g) refund but would NOT rerun the ADP test as the excess was due to contributions to an unrelated Plan that the Sponsor had no control over. Unless there is a reg I'm missing that address this situation.

Thank you for responding and confirming what we believed.