Actual Deferral Percentage (ADP) Test. For each Plan Year, the Plan Administrator must determine whether the Plan's 401(k) arrangement satisfies either of the following ADP tests: (i) The ADP for the Highly Compensated Group does not exceed 1.25 times the ADP of the Nonhighly Compensated Group; or (ii) The ADP for the Highly Compensated Group does not exceed the ADP for the Nonhighly Compensated Group by more than two percentage points (or the lesser percentage permitted by the multiple use limitation in Section 14.10) and the ADP for the Highly Compensated Group is not more than twice the ADP for the Nonhighly Compensated Group.
Appears in 2 contracts
Samples: 401(k) Plan Adoption Agreement (Petco Animal Supplies Inc), Adoption Agreement (Bank of Granite Corp)
Actual Deferral Percentage (ADP) Test. For each Plan Year, the Plan Administrator must determine whether the Plan's ’s 401(k) arrangement satisfies either of the following ADP tests:
(i) The ADP for the Highly Compensated Group does not exceed 1.25 times the ADP of the Nonhighly Compensated Group; or
(ii) The ADP for the Highly Compensated Group does not exceed the ADP for the Nonhighly Compensated Group by more than two percentage points (or the lesser percentage permitted by the multiple use limitation in Section 14.10) and the ADP for the Highly Compensated Group is not more than twice the ADP for the Nonhighly Compensated Group.
Appears in 2 contracts
Samples: Defined Contribution Prototype Plan (MSC Software Corp), Defined Contribution Prototype Plan (Trimeris Inc)
