Duration: 60 Min.
IRC Sections 401(k) and 401(m) require that the average percentages of HCE deferrals or contributions cannot exceed those of NHCEs by more than a specified percentage. 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. Before a plan can be tested, certain steps need to be completed. These include setting up the plan specs, entering census data and processing eligibility.
In this on-line session, the first of three on this subject, we will examine the requirements of the IRC as well as discuss the steps necessary to prepare a plan for this testing. We will also look at the different types of tests that can be performed.
Who Should Attend: Experienced users