Duration: 60 Min.
Description
Under Sections 401(k) and 401(m), the average percentages of HCE deferrals or matching contributions cannot exceed those of the NHCEs by more than a specified amount. Testing for these requirements is known as ADP and ACP testing, and each year, a 401(k) plan must satisfy both the ADP and the ACP test. But before a plan can be tested, certain steps need to be completed, including setting up the plan specs, entering census data and processing eligibility. Then the testing can commence.
In this session, we will:
- understand the requirements of the ADP and ACP tests
- properly set up the plan's provisions and history for testing
- enter and process the needed census data
- apply the appropriate limits to contributions and allocations
- examine who is included and who is excluded from the tests
- discuss available projection methods for testing
- demonstrate what information is contained in each available ADP/ACP report