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Retirement Planning
Chapter 5: Profit-Sharing Plans/FAILING THE ADP TEST
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 5: Profit-Sharing Plans

FAILING THE ADP TEST

01.Core Concepts

1. Corrective Distributions • Decreases ADP of HC 2. Recharacterization • Decreases ADP of HC 3. Qualified Non-elective contributions (QNEC) • Increases ADP of NHC • 100% vested 4. Qualified matching contributions (QMC) • Increases ADP of NHC • 100% vested