Potential 414(s) failure

Plan excludes bonuses from compensation and has a potential 414(s) failure.  Assuming ADP and ACP testing passes using 415 comp are corrective contributions required?  I read conflicting information about that.

Thank you for any guidance   

It sounds like you have (or your client has) a 401(k) / 401(m) plan that is not a 401(k) / 401(m) safe harbor plan and does not have employer nonelective contributions made to it.  You are performing the ADP / ACP tests with compensation that clearly satisfies 415 compensation.

In those circumstances, there is no requirement that the compensation definition used by the plan to compute contributions must comply with Code Section 414(s).

Thank you

5 hours ago, MWeddell said:

there is no requirement that the compensation definition used by the plan to compute contributions must comply with Code Section 414(s)

That is a great point that is often overlooked - if a non-safe harbor "plan" (401(a), 401(k), 401(m), etc.) satisfies nondiscrimination (401(a)(4), ADP, ACP) using a definition of compensation that satisfies 414(s) (such as 415 comp) then the definition of plan compensation used to determine compensation and benefits need not be separately tested and pass such test. A lot of times it is easier to just skip to testing using a safe harbor gross compensation rather than do a compensation test first and hopefully pass so you can test nondiscrimination using plan compensation. You're likely better off on your results using the safe harbor compensation anyway.