ADP EXAMPLE (1 OF 2)
01.Core Concepts
Boo Company sponsors a 401(k) plan with ten eligible employees. Each employee can defer up to 70 percent of their compensation limited to the annual deferral limit. The employees made the following deferral elections: Basic Data ADR Elective Deferral Compensation Ownership Employee 5.5% $12,100 $220,000 60% A 7.0% $12,320 $176,000 30% B 10.0% $16,500 $165,000 5% C 10.0% $8,000 $80,000 3% D 5.0% $2,500 $50,000 2% E 10.0% $3,000 $30,000 -F 0.0% -$25,000 -G 4.0% $1,000 $25,000 -H 0.0% -$25,000 -I 2.5% $500 $20,000 -J