Definition of Actual Deferral Percentage (ADP


Actual Deferral Percentage (ADP means for each Participant who is eligible to make Pre-Tax Contributions at any time during the Plan Year, the ratio (expressed as a percentage) of (a) the Pre-Tax Contributions with the meaning of Section 5.4(b) credited to his or her Account for such Plan Year to (b) his or her Compensation for the Plan Year.

Examples of Actual Deferral Percentage (ADP in a sentence

An otherwise applicable Plan limit is a limit in the Plan that applies to Elective Deferrals or Roth Elective Deferrals without regard to Catch-Up Contributions, such as the limit on Annual Additions, the dollar limitation on Elective Deferrals or Roth Elective Deferrals under Code Section 402(g) (not counting Catch-Up Contributions) and the limit imposed by the Actual Deferral Percentage (ADP) Test under Code Section 401(k)(3).
An otherwise applicable Plan limit is a limit in the Plan that applies to Elective Deferrals or Roth Elective Deferrals without regard to Catch-Up Contributions, such as the limits on annual additions, the dollar limitation on Elective Deferrals or Roth Elective Deferrals under Code Section 402(g) (not counting Catch-Up Contributions) and the limit imposed by the Actual Deferral Percentage (ADP) test under Code Section 401(k)(3).
Neither the Actual Deferral Percentage ("ADP") nor the Actual Contribution Percentage ("ACP") of the Highly Compensated Employees may exceed the greater of the following: (a)25 times the ADP or ACP of all other eligible Employees, or (b) 2 percentage points higher than the ADP or ACP of all other eligible Employees, up to 2 times such ADP or ACP.
The term Actual Deferral Percentage (ADP) means the average of the Actual Deferral Ratios for a specified group of Participants.
Accordingly, the provisions of this Section shall apply for the Plan Year and any provisions relating to the Actual Deferral Percentage ("ADP") test described in Section 401(k)(3) of the Code or the Average Contribution Percentage ("ACP") test described in Section 401(m)(2) shall not apply; provided, however, the ACP test described in Section 3.06(b) shall be conducted with respect to such After-Tax Contributions using the "current year" testing method.