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Retirement Planning
Chapter 5: Profit-Sharing Plans/ACTUAL DEFERRAL PERCENTAGE TEST (ADP TEST)
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Chapter 5: Profit-Sharing Plans

ACTUAL DEFERRAL PERCENTAGE TEST (ADP TEST)

01.Core Concepts

Limits the employee elective deferrals for the HC based on the elective deferrals of the NHC. ADP Schedule The Permissible ADP for HC Employees Is: If the ADP for NHC Employees is: 2 times ADP for NHCs 0% to 2% 2% plus ADP for NHCs 2% to 8% 1.25 times ADP for NHCs 8% and over