Guest Juice Posted September 9, 1999 Posted September 9, 1999 A 401(k) plan is using current year ADP testing and has semi annual enrollment. If the plan is out of compliance, can the Plan Administrator lower the HCE's deferral percent at this time or any time to help produce a passing ADP test?
Alan Simpson Posted September 9, 1999 Posted September 9, 1999 The plan document/adoption agreement should indicate when a participant can change the amount/percentage they elected to defer into the plan. However, they should be able to drop to a $0/0% deferral at any time during the plan year regardless of the plan limitation on when deferrals may change.
Wessex Posted September 9, 1999 Posted September 9, 1999 That old refrain . . . Consult your plan document. Most well-crafted plans provide that the plan administrator can reduce or suspend an HCE's deferrals at any time to comply with discrimination testing.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now