One of my plans failed the ADP test in 2006. Corrective distributions were made. We later discovered that incorrect compensation was used. The test was rerun and now we see that too much money was "distributed" to HCEs earlier.

Does the method to correct ADP/ ACP failures also apply to this situation? If not, how would we correct this?

Thanks.

this is an old response (ok, maybe a just a shade of being an ancient response) , and as is indicated in the answer the IRS may be reconsidering the opinion expressed here



http://benefitslink.com/qa_columns/plan_de...archive/41.html