Doing a projection

Top heavy 401k
QNEC very small .733% to NHCE

8 NHCE - 3 terminated - no top heavy for these 3 but top heavy for remaining 5

keys also get 3% min - all benefiting

Pass (a) 4 on allocations basis with top heavy and QNEC

Without QNEC fail on allocations basis- HOWEVER, if I test onan accrual basis, 3 that term'd aren't showing up in gateway and plan passes 401(a) 4 on accrual basis

Is this possible and allowed?

if the plan does not have langage prohibiting this testing, i.e. includes failsafe language, this sounds ok to me.

What kind of language do you mean?

If it helps, it's a Corbel VS

Failsafe language might say, for example, that in the event that the ratio/percentage test is not satisfied, the employer is obligated to do X,Y, Z (make a contribution to all NHCEs to pass r/p for example) so that the ratio/percentage test is safisfied. Notice you've got a 62.5% r/p so this would be a candidate.

But I don't think the Corbel VS would have this.