ACP Testing Limitations Clause Samples
The ACP Testing Limitations clause defines the boundaries and restrictions on testing activities related to the Approved Control Plan (ACP). Typically, this clause specifies what types of tests can be performed, under what conditions, and may set limits on the frequency, scope, or methods of testing. For example, it might restrict testing to certain environments or require prior approval before conducting specific tests. The core function of this clause is to prevent unauthorized or excessive testing, thereby protecting proprietary processes and ensuring that testing activities do not disrupt operations or compromise sensitive information.
ACP Testing Limitations. Employee contributions and Matching Contributions must meet the nondiscrimination requirements of Code Section 401(a)(4) and the ACP Test of Code Section 401(m). Safe Harbor Contributions are taken into account for a Plan Year under the ACP Test in accordance with Treasury Regulations Section 1.401(m)-1(b)(4)(ii)(A). If Employee contributions (including any Elective Deferrals recharacterized as Voluntary After-tax Contributions) or Matching Contributions are made in connection with a cash or deferred arrangement, the ACP Test is in addition to the ADP Test under Code Section 401(k). QMACs and QNECs used to satisfy the ADP Test may not be used to satisfy the ACP Test.
ACP Testing Limitations. Employee contributions and Matching Contributions must meet the nondiscrimination requirements of Code Section 401(a)(4) and the Average Contribution Percentage (hereinafter ACP) Test of Code Section 401(m). If Employee contributions (including any Elective Deferrals recharacterized as Voluntary After-tax Contributions) or Matching Contributions are made in connection with a cash or deferred arrangement, the ACP Test is in addition to the ADP Test under Code Section 401(k). Qualified Matching Contributions and Qualified Non-Elective Contributions used to satisfy the ADP test may not be used to satisfy the ACP test.