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ADP Test for first plan year


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Are there any alternative ways to do the ADP test in a plan's first year? Please advise.

Posted

There are a lot of optional rules that result in different ways to run an ADP test every plan year.

You may be referring to the special rules in Notice 98-1 for using the prior plan year method in the first year. It may be done using the actual current year NHCE percentages or using 3% for the NHCE percentages.

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