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 ...

In this series of articles, we explore the implications of the long-term, part-time employee rules under the SECURE Act and SECURE 2.0 and the impact those rules have on employers and their workforces ...

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 ...

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 ...