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Actual Deferral & Actual Contribution Percentage Tests (ADP/ACP)


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Quotes of the day:

Early morning hath gold in its mouth.

— Benjamin Franklin

The Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) tests are two tests that companies must conduct to ensure that their 401(k) plans don’t unfairly benefit highly-paid employees at the expense of others.

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