With acronyms like ADP, ACP, NHCEs and HCEs, the technicality of 401(k) plan nondiscrimination testing may seem overwhelming.
Even though nondiscrimination testing is likely performed by a plan's record keeper or third-party administrator, plan sponsors need to understand the basics of the tests, including the types of contributions that are tested, the methods used and the consequences of failing.
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Source: PlanAdviser.com
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