Ensure your 401k retirement plan allows your employees to save the maximum amount allowed by understanding and utilizing ADP/ACP testing.
401(k) Plan Nondiscrimination Testing
Avoid penalties and fees by ensuring your retirement plan meets IRS 401k plan nondiscrimination test requirements.
ADP/ACP Testing Deadline
Corrective distributions must be processed by March 15 for a failed ADP/ACP test for a calendar plan year. Take these steps to prepare.
What A Failed ADP/ACP Test Means
If you want to maximize contributions for the Highly Compensated Employees, don’t stress (or panic!) at the thought of failing the ADP/ACP testing.
Safe Harbor Contributions
Employers with qualified 401(k) plans that fail nondiscrimination testing each year may find that a plan amendment to add a safe harbor contribution is an effective solution. A safe harbor provision requires a mandatory employer contribution, 100% immediate vesting of...