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401(k) Testing Techniques [2016]
Presentor: Derrin Watson Recorded Date: 2/2/2016 Duration: 100 Min.

This program was recorded during a live presentation given on February 2, 2016 at 12:00PM EST.

There are plenty of ways for the creative practitioner to assist a client in passing the ADP test. In fact, some are still available for 2015 calendar year plans! In this Web seminar, we provide overview and instruction on more than 20 different approaches which can assist clients with ADP testing issues. Come fill up your toolbox so you can select just the right approach for your client’s situation.

Topics include:
  • Techniques available after the year is over
    • Compensation adjustments
    • Early participation choices
    • Borrowing
    • Borrowing on both ADP and ACP
    • Targeting (reverse QNECing)
  • Techniques available during a year
    • Testing methods
    • Exclusions
    • Limitations
    • Negative elections
    • First plan year
    • HCE issues
  • Strategies you must put into play before the start of the year
    • Safe harbor strategies


There are no prerequisites and no advance preparation required for this program. However, an attendee should have an understanding of the fundamental rules and concepts of 401(k) administration and testing, and have one year of experience.

Level: Intermediate

Instructional Delivery Method
Group – Internet-Based

NASBA Field of Study: Taxes

Speaker: S. Derrin Watson, J.D.
Recipient of ASPPA's 2006 Educator of the Year Award

Objectives: After attending this Web seminar, an attendee should be able to:
  1. Identify strategies plans can use to address ADP testing problems
  2. Determine which strategies will best meet an employer’s needs
  3. Explain the timing rules applicable to the various strategies
  4. Apply the ADP test using various borrowing techniques
  5. Creatively use QNECs to help pass the ADP test
  6. Exclude certain employees to assist in passing the ADP and ACP tests

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