Here is something I thought was interesting. A plan that uses prior year testing fails to correct by the end of the following year. Normally you can't use QNECs to correct for a plan that uses prior year testing. The EPCRS says you can use QNECs to correct the failure to correct the ADP failure. Am I missing anything?

The ERISA Outline Book written by Sal Tripodi indicates in Chapter 11, Section IX, Part A.4.a.2 that the 12-month contribution period is with reference to the prior plan year. See example below. However, in a later paragraph (4.d. Sal explains that EPCRS makes an exception to this 12 month rule regardng the contribution period, but there is still a 415 issue because EPCRS does not provide relief there.

To avoid 415 issues, use the 1 to 1 correction method from EPCRS Appendix B - that should cost the Employer less in contribution than a QNEC while still requiring the HCE's to take their distribution,

THIS IS AN EXAMPLE FROM THE ERISA OUTLINE BOOK:
4.a.2)a) Example. The prior year testing method is being used to run the ADP test for the
plan year ending December 31, 2005. That means the 2004 plan year data (i.e., data from
the prior plan year) are being used to calculate the ADP of the NHC group. In this case, to
boost the prior year percentage for the NHCs by including QNECs, in order to produce a
higher ADP test limit for the HCEs for the 2005 plan year, the QNECs must be contributed
for the NHCs no later than 12 months after the close of the 2004 plan year. Thus, the 12-
month QNEC contribution period ends on December 31, 2005. If the plan fails the ADP test
for the 2005 plan year, it must take corrective action within 12 months following the close
of the 2005 plan year (i.e., January 1 through December 31, 2006). However, QNECs could
not be made for the NHCs during that 12-month correction period because they would need
to be allocated to the NHCs for the 2004 plan year, and any contributions after December
31, 2005, are too late to be allocated for the 2004 plan year. The plan would have to make
correction under the corrective distribution method described in Section VIII of this chapter.

That is correct. It references you to the chapter to correct the failure to correct a failed ADP which the EPCRS gives you two choices, make QNECs or the one-2-one correction method.

The plan I am dealing with will has no 415 limit issues.