Question: A Profit - Sharing plan with a 4 0 1 ( K ) failed the ADP test. The HCE ADP rate was 1 0 %

A Profit-Sharing plan with a 401(K) failed the ADP test. The HCE ADP rate was 10%.The employer would like to correct the failure by making Qualified Non-Elective Contributions. Which of the following statements is most accurate?A contribution in an amount that the NHC ADP rate will be 8% will correct the failure. This contribution will only be made to NHC employees who made a deferral.A contribution of $3,000 must be made by the employer to each employee's account. The contribution will vest based on the 2-6 year graduated schedule.None of these choices.A contribution in an amount that the NHC ADP rate will be 8% will correct the failure. This contribution will be made to all NHC employees.

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