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How does the IRS 2 ½ month deadline following the close of the plan year affect the ADP and ACP Tests?

April 26, 2017ADP affect Deadline IRS month Plan year

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How does the IRS 2 ½ month deadline following the close of the plan year affect the ADP and ACP Tests?

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If the failed ADP and ACP Tests are corrected after the 2 ½ month deadline by making corrective distributions, the employer incur an excise tax of 10% of the amount of the excess contribution. No penalty applies if the tests are corrected by making a qualified non-elective contribution.