Topic Archive: ACP Test

What Is the Deadline to Correct a Failed ADP/ACP Test?

DWC | 04/24/18

Facts

Every couple of years, our 401(k) plan fails the ADP/ACP test by a small margin. Since we don’t always fail the test, gathering our year-end census information to send to our TPA sometimes isn’t as high a priority as some of the other projects necessary to close out the year.

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When Can We Change Our ADP/ACP Testing Method?

DWC | 10/10/17

Facts

We have a 401(k) plan that allows for both employee deferrals and a company match. Our annual testing each year is based on the amounts contributed in the previous year. That has allowed us to notify our highly compensated employees of the maximum they can contribute each year to ensure we pass testing.

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