Combination 401k refund & qnec

I have a plan that fails 2019 APD testing and it is now after March 15.  Is it correct that the deadline for issuing refunds without an excise tax was pushed back?

There are 4 HCE’s all over age 50 and two NHCE’s.  The

The HCE’s deferred respectively

5000

5000

11000

12500

So none had 402(g) catch-up in 2019.

Is it permissible to do both a small QNEC for the two NHCE’s and still have the plan fail ADP testing – then do the corrective refunds but to the point where I can utilize ADP catch-up contributions to avoid having to issue refunds altogether. This is on an ASC volume submitter plan document and I don't see where it allows or does not allow a combination of corrective options.  

I'll jump in....

Look in the plan document for language about an "operational QNEC". 

I'd guess that the plan gives many options to pass the test in addition to the QNEC.

Is the Plan current year testing?

2 hours ago, Becky Schwing said:

Is it permissible to do both a small QNEC for the two NHCE’s and still have the plan fail ADP testing

I would say, yes, the plan may have targeting limitations in regards to the amount of an operational qnec.  You may not be able to give as much qnec as the plan would like to not have any refunds.

So dig in and figure out the sweet spot of how much QNEC would it take to get to small refunds or no refunds, with or without catch-up.

Without the compensation and the 2 NHCE comp and deferrals, I don't think we can do much for you.

Hope that helps.