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Common use of ACP test Clause in Contracts

ACP test. The Average Contribution Percentage for Eligible Participants who are Highly Compensated Employees for the Plan Year and the Average Contributions Percentage for Eligible Participants who are Nonhighly Compensated Employees for the same Plan Year must satisfy one of the following tests: (i) the Average Contribution Percentage for Eligible Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Average Contribution Percentage for Eligible Participants who are Nonhighly Compensated Employees for the same Plan Year multiplied by 1.25; or (ii) the Average Contribution Percentage for Eligible Participants who are Highly Compensated Employees shall not exceed the Average Contribution Percentage for Eligible Participants who are Nonhighly Compensated Employees by more than two percentage points or such lesser amount as the Secretary of the Treasury shall prescribe to prevent the multiple use of this alternative limitation with respect to any Highly Compensated Employee.

Appears in 6 contracts

Samples: Defined Contribution Plan (White Mountains Insurance Group Inc), Prototype Defined Contribution Plan Adoption Agreement (Tca Cable Tv Inc), 401(k) Plan Adoption Agreement (Pennfed Financial Services Inc)

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ACP test. The Average Contribution Percentage for Eligible Participants who are Highly Compensated Employees for the Plan Year and the Average Contributions Percentage for Eligible Participants who are Nonhighly Compensated Employees Employee for the same Plan Year must satisfy one of the following tests: (i) the Average Contribution Percentage for Eligible Participants who are Highly Compensated Employees for the Plan Play Year shall not exceed the Average Contribution Percentage for Eligible Participants who are Nonhighly Compensated Compensate Employees for the same Plan Year multiplied by 1.25; or (ii) the Average Contribution Percentage for Eligible Participants who are Highly Compensated Employees for the Play Year shall not exceed the Average Contribution Percentage for Eligible Participants who are Nonhighly Compensated Compensate Employees by more than two percentage points or such lesser amount as the Secretary of the Treasury shall prescribe to prevent the multiple use of this alternative limitation with respect to any Highly Compensated Employee.

Appears in 1 contract

Samples: 401(k) Plan Adoption Agreement (Gadzooks Inc)

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