ADP Limit definition

ADP Limit means for each Plan Year that (a) the ADP for Eligible Employees who are Highly Compensated Employees for such Plan Year does not exceed 125% of the ADP for all other Eligible Employees for such Plan Year, or (b) the excess of the ADP for Eligible Employees who are Highly Compensated Employees for such Plan Year over the ADP for all other Eligible Employees for such Plan Year is not more than two percentage points, and the ADP for Eligible Employees who are Highly Compensated Employees for such Plan Year is not more than twice the ADP for all other Eligible Employees for such Plan Year; provided, the ADP Limit shall be determined (as a group) with respect to all Consolidated Participating Companies (as a group) and, separately, with respect to each Subsidiary (and its Affiliates) that is a Participating Company.
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ADP Limit means the Average Actual Deferral Percentage limitation under Section 23.1 of the Regulations.
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ADP Limit f living adjustment factor prescribed by the Secretary of the Treasury under Section 415(d) of the Code for calendar years beginning after December 31, 1987, as applied to such items and in such manner as the Secretary shall provide.
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Examples of ADP Limit in a sentence

  • The ADP Limit is the maximum dollar amount of Elective Deferrals each HCE Participant may defer under the Plan such that the Plan passes the ADP test for that Plan Year.

  • The Plan Administrator will determine the total amount of the Excess Contributions to the Plan by starting with the HCE(s) who has the greatest ADR, reducing his/her ADR (but not below the next highest ADR), then, if necessary, reducing the ADR of the HCE(s) at the next highest ADR, including the ADR of the HCE(s) whose ADR the Plan Administrator already has reduced (but not below the next highest ADR), and continuing in this manner until the ADP for the HCE Group is equal to the ADP Limit.

  • A Catch-Up Deferral is an Elective Deferral by a Catch-up Eligible Participant and which exceeds: (a) a Plan limit on Elective Deferrals under Section 3.02(A); (b) the Annual Additions Limit under Section 4.05(B); (c) the Elective Deferral Limit under Section 4.10(A); or (d) the ADP Limit under Section 4.10(B).

  • If the Employer in its Adoption Agreement has elected to test its 401(k) Plan as a Traditional 401(k) Plan, a Participant's Elective Deferrals for a Plan Year may not exceed the ADP Limit.

  • Excess Contributions are the amount of Elective Deferrals made by the HCEs which exceed the ADP Limit and which may not be recharacterized as Catch-Up Contributions.

  • In addition to the other correction methods under this Section 4.10(B), the Plan Administrator operationally may elect to correct an ADP test failure by re-characterizing the Elective Deferrals in excess of the ADP Limit as Employee Contributions in accordance with Treas.

  • The amount of Excess Contributions and Excess Aggregate Contributions shall be determined by reducing the Deferral Percentages or Contribution Percentages of Highly Compensated Employees, beginning with those at the highest Deferral Percentage or Contribution Percentage, to the next lower Deferral Percentage or Contribution Percentage level for Highly Compensated Employees or, if greater, a percentage that results in compliance with the ADP Limit or ACP Limit.

  • First, the ADR of the Highly Compensated Employee with the highest ADR will be reduced to the extent necessary to satisfy the ADP Limit or to cause such Participant’s ADR to equal the ADR of the Highly Compensated Employee with the next highest ADR.

  • If the testing methods are not consistent for a Plan Year, Qualified Matching Contributions may not be treated as Elective Contributions for determining compliance with the ADP Limit and Elective Contributions may not be treated as Matching Contributions for determining compliance with the ACP Limit.

  • If the Employer in its Adoption Agreement has elected to test its 401(k) Plan as a Traditional 401(k) Plan, a Participant’s Elective Deferrals for a Plan Year may not exceed the ADP Limit.