FAQ 725: ADP--Returns-Calculated vs. actual don't tie


I seem to be having trouble with the attached ADP discrimination testing. When reviewing the Details of Corrections, the total reduction amount calculated under "Calculated Adjustments" is different from the excess amount listed under "Actual Adjustments". They should equal the same dollar amount.


The problem is that there is an HCE in the plan with a negative deferral (-6487.91). She is a status A but has a termination date of 10/31/2006, which is kind of odd as well. You need to run the "Negative Contributions" employee data check. It is causing the difference on the HCE return. On the test it doesn't print the negative because it is not formatted to hold a negative. I'm not sure what happened to make that amount negative, but there are 4 people with them. The other 3 have termination dates in 2005, so they don't cause any issues.