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 ...
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 ...
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