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401k Plan – Fix It Guide

Posted Thursday, April 9, 2015 by Joe Trybula.

alt textThe IRS mandates that Plan Sponsors of 401(k) plans must test their 401(k) plans annually to ensure that the plan does not unduly benefit the owners and highly compensated employees at the expense of other employees. The Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) tests must be passed in order to satisfy non-discrimination requirements of the IRS.

If the plan fails either test, the employer must take corrective action to protect its qualified status in the 12-month period following the close of the plan year in which the oversight occurred.

Click Here to view the IRS 401(k) Plan Fix -It Guide.

Click Here to request additional information on how to get your plan to pass testing without getting a refund. Even if your plan passed testing, contact us to learn valuable information from the results.

For more information on how your company could take advantage of the plan design and compliance services offered by the Printers401k® program exclusively through your membership in the PPI Association, please contact Joe Trybula at 800.307.0376 or joe@diversifiedfa.com.

Investment Advice offered through Diversified Financial Advisors, LLC, a registered Investment Advisor