ACP Test definition

ACP Test. The determination of whether the ACP is in compliance with the Basic or Alternative Limitation for a Plan Year (as defined in Section 12.2).

AI-Powered Contracts

Draft, Review & Redline at the Speed of AI

ACP Test. The Contribution Percentage test that is set forth in Section 3.5.2 of the Plan.

ACP Test means the average contribution percentage test performed in accordance with Plan section 6.4.

Examples of ACP Test in a sentence

Excess Contributions and Excess Aggregate Contributions are allocated to the Highly Compensated Employees with the largest amount of Employer contributions taken into account in calculating the ADP or ACP Test for the year in which the excess arose, beginning with the Highly Compensated Employee with the largest amount of such Employer contributions and continuing in descending order until all the Excess Contributions and Excess Aggregate Contributions have been allocated.
After correcting distributions are allocated, it is not necessary to recompute the Highly Compensated Employee averages to determine if they satisfy the ADP Test and/or the ACP Test.
If Employee contributions (including any Elective Deferrals recharacterized as Voluntary After-tax Contributions) or Matching Contributions are made in connection with a cash or deferred arrangement, the ACP Test is in addition to the ADP Test under Code Section 401(k).
The ACP Test Safe Harbor is automatically satisfied if the only Matching Contribution to the Plan is either a Basic Matching Contribution or an Enhanced Matching Contribution that does not provide a match on Elective Deferrals in excess of 6% of Compensation.
For Plans that allow Voluntary or Required After-tax Contributions, the ACP Test is applicable with regard to such contributions.

More Definitions of ACP Test

ACP Test means the actual contribution percentage test determined pursuant to Section 4.7.

ACP Test means the average contribution percentage test as described in Section 3(a) of this Appendix B and as set forth in section 401(m)(2) of the Code and section 1.401(m)-1 of the Treasury Regulations.

ACP Test. 1 1.4 "Actual Deferral Percentage" 1 1.5 "Adjustment Factor" 1 1.6 "Administrator" 1 1.7 "Adoption Agreement" 1 1.8 "ADP Test 1 1.9 "Affiliate" 1

ACP Test means the nondiscrimination test described in Code Section 401(m)(2) as provided for in subparagraph (d) of Section

ACP Test means the Code ss. 401(m) nondiscrimination test described in ss. 2 below.

ACP Test means the actual contribution percentage test described by Section 4.7.

ACP Test means the Actual Contribution Percentage Test.