Dazednconfused Posted April 30, 2018 Posted April 30, 2018 Plan has 3 months of service for 401k (entry month following) and 1 YOS for safe harbor 3% and Profit Sharing. There are 3 NHCEs and 1 HCE that enter the plan in 2017 for deferrals only, HCE deferred the max, 3 NHCEs are at zero, so OEE ADP test fails. Can the HCE be tested with the non-excludable group and the NHCEs be carved out and thus pass ADP? In reading regs (and other posts) this can be done but I am not sure if it applies with different eligiblity periods for safe harbor and deferrals (and I just might be fried for the day). Thanks!
ETA Consulting LLC Posted May 1, 2018 Posted May 1, 2018 What you're proposing will not work. The portion of the plan not covered by the Safe Harbor must pass the ADP test. I'll refer you to IRS Notice 2000-3, Q&A-10. Good Luck! CPC, QPA, QKA, TGPC, ERPA
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