For the ADP (Actual Deferral Percentage) test, the Internal Revenue Service (IRS) requires 401(k) plans prove that highly compensated employees (HCEs)—those employees who earned more than $115,000 in ...

In this series of articles, we explore the implications of the long-term, part-time employee rules under the SECURE Act and SECURE 2.0 and the impact those rules have on employers and their workforces ...

The actual deferral percentage test requires that the Actual Deferral Percentage (“ADP”) of eligible highly compensated employees ( Q 3930) be compared to the ADP of all other eligible employees, and ...

A plan’s continued tax qualification is conditioned on its meeting the operational requirements of IRC Section 401(c). For a 401(k) plan, that includes passage of annual ADP and ACP testing. When that ...