Current Year Testing Method definition

Current Year Testing Method. The use of the Plan Year's ADP for the Plan Year's NHCE Group for purposes of performing the Plan Year's ADP Test and/or the use of the Plan Year's ACP for the Plan Year's NHCE Group for purposes of performing the Plan Year's ACP Test.

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Current Year Testing Method means, for any Plan Year, the use of the Plan Year’s Average Deferral Percentage for the Plan Year’s NHCE Group for purposes of performing the Plan Year’s ADP Test and/or the use of the Plan Year’s Average Contribution Percentage for the Plan Year’s NHCE Group for purposes of performing the Plan Year’s ACP Test.

Current Year Testing Method. The "ADP" or "ACP" of Highly Compensated Employees for the Plan Year shall be compared to the "ADP" or "ACP" of Non-Highly Compensated Employees for the same Plan Year. (Must choose if Option 1.11(a)(3), 401(k) Safe Harbor Matching Employer Contributions, or Option 1.12(a)(3), 401(k) Safe Harbor Formula, with respect to Nonelective Employer Contributions is checked.)

Examples of Current Year Testing Method in a sentence

• If the Employer has elected in the Adoption Agreement to use the Current Year Testing Method, then, in calculating the Aggregate Limit for a particular Plan Year, the Non-Highly Compensated Employees’ ADP and ACP for that Plan Year, instead of the prior Plan Year, is used.

• If the Employer elects to use the Current Year Testing Method, it may switch to the Prior Year Testing Method only if the Plan satisfies the requirements for changing to the Prior Year Testing Method as set forth in IRS Notice 98-1 (or superseding guidance).

• The Sponsoring Employer may elect either the Prior Year Testing Method or Current Year Testing Method in the Adoption Agreement.

• For Plan Years beginning before January 1, 1997, the Current Year Testing Method is deemed to have been in effect.

• For Plan Years beginning on or after January 1, 1997, the ACP Test will be performed using the Prior Year Testing Method or the Current Year Testing Method, as selected under Part 4F, #31 of the Agreement.

More Definitions of Current Year Testing Method

Current Year Testing Method means the nondiscrimination testing method in which (a) for purposes of the ADP Test, the ADP for Participants who are Highly Compensated Employees for the Plan Year that is being tested is compared to the ADP for Participants who are Non-Highly Compensated Employees for the Plan Year that is being tested; and (b) for purposes of the ACP Test, the ACP for Participants who are Highly Compensated Employees for the Plan Year that is being tested is compared to the ACP for Participants who are Non-Highly Compensated Employees for the Plan Year that is being tested.

Current Year Testing Method means data from the testing year is used in determining the Average Deferral Percentage or Average Contribution Percentage for non-Highly Compensated Participants.

Current Year Testing Method means testing ACP compliance under Section 401(m)(2) of the Code by comparing the current Plan Year ACP for Participants who are Highly Compensated Employees for the Plan Year of reference with the current Plan Year ACP for Participants who are Non-Highly Compensated Employees.

Current Year Testing Method means testing ADP compliance under Section 401(k)(3) of the Code by comparing the current Plan Year ADP for Participants who are Highly Compensated Employees for the Plan Year of reference with the current Plan Year ADP for Participants who are Non-Highly Compensated Employees.

Current Year Testing Method means, for any Plan Year, the use of the Plan --------------------------- Year's Average Deferral Percentage for the Plan Year's NHCE Group for purposes of performing the Plan Year's ADP Test and/or the use of the Plan Year's Average Contribution Percentage for the Plan Year's NHCE Group for purposes of performing the Plan Year's ACP Test.

Current Year Testing Method means testing ADP compliance under section 401(k)(3) of the Code by comparing the current Plan Year ADP for participants who are Highly Compensated Employees for the Plan Year of

Current Year Testing Method means testing ACP compliance under section 401(m)(2) of the Code by comparing the current Plan Year ACP for participants who are Highly Compensated Employees for the Plan Year of reference with the current Plan Year ACP for participants who are Nonhighly Compensated Employees.