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 ...

Advisers can assist plan sponsors wrestling with how to pass IRS testing for qualified employer-sponsored retirement plans by explaining the trade-offs involved between the costs of safe harbor ...

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 will not be treated as violating the ADP test merely on account of the making of (or right to make) catch-up contributions by participants age 50 or over under the provisions of IRC Section 414 ...