Current Year Testing Method. The “ADP” or “ACP” of Highly Compensated Employees for the Plan Year shall be compared to the “ADP” or “ACP” of Non-Highly Compensated Employees for the same Plan Year. (Must choose if Option 1.11(a)(3), 401(k) Safe Harbor Matching Employer Contributions, or Option 1.12(a)(3), 401(k) Safe Harbor Formula, with respect to Nonelective Employer Contributions is checked.)
Current Year Testing Method. The ACP for a Plan Year for Eligible Members who are Highly Compensated Employees for each Plan Year and the ACP for Eligible Members who are Nonhighly Compensated Employees for the Plan Year must satisfy one of the following tests:
i) The ACP for a Plan Year for Eligible Members who are Highly Compensated Employees for the Plan Year shall not exceed the ACP for Eligible Members who are Nonhighly Compensated Employees for the Plan Year multiplied by 1.25; or
ii) The ACP for a Plan Year for Eligible Members who are Highly Compensated Employees for the Plan Year: A shall not exceed the ACP for Eligible Members who are Nonhighly Compensated Employees for the Plan Year multiplied by 2, and B the difference between such ACPs is not more than 2. If we have elected in Item K(2)(a) to use the current year testing method, that election cannot be changed unless (i) the Plan has been using the current year testing method for the preceding five Plan Years, or if less, the number of Plan Years the Plan has been in existence; or (ii) the Plan otherwise meets one of the conditions specified in Internal Revenue Service Notice 98-1 (or superseding guidance) for changing from the current year testing method. A Member is a Highly Compensated Employee for a particular Plan Year if he meets the definition of a Highly Compensated Employee in effect for that Plan Year. Similarly, a Member is a Nonhighly Compensated Employee for a particular Plan Year if he does not meet the definition of a Highly Compensated Employee in effect for that Plan Year.
Current Year Testing Method. Under the Current Year Testing Method, the ADP of the Highly Compensated Employee Group for the current Plan Year is compared to the ADP of the Nonhighly Compensated Employee Group for the current Plan Year. If the Employer elects to use the Current Year Testing Method under Part 4F of the Agreement, the Plan must satisfy the ADP Test, as described in subsection (1) above, for each Plan Year, but using the ADP of the Nonhighly Compensated Employee Group for the current Plan Year instead of for the prior Plan Year. If the Employer elects to use the Current Year Testing Method, it may switch to the Prior Year Testing Method only if the Plan satisfies the requirements for changing to the Prior Year Testing Method as set forth in IRS Notice 98-1 (or superseding guidance).
Current Year Testing Method. The current year ratio will be used for Plan Years beginning on or after .
Current Year Testing Method. A method for applying the ADP Test and/or the ACP Test. See Section 17.2(a)(2) for a discussion of the Current Year Testing Method under the ADP Test and 17.3(a)(2) for a discussion of the Current Year Testing Method under the ACP Test.
Current Year Testing Method. The term “Current Year Testing Method” means the nondiscrimination testing method in which (a) for purposes of the ADP Test, the ADP for Participants who are Highly Compensated Employees for the Plan Year that is being tested is compared to the ADP for Participants who are Non-Highly Compensated Employees for the Plan Year that is being tested; and (b) for purposes of the ACP Test, the ACP for Participants who are Highly Compensated Employees for the Plan Year that is being tested is compared to the ACP for Participants who are Non-Highly Compensated Employees for the Plan Year that is being tested.
Current Year Testing Method. [Practitioner Note: If this Plan is intended to be a Safe-Harbor 401(k) Plan under Part 4E above, the Current Year Testing Method must be elected under b. See Section 17.6 of the BPD.]
Current Year Testing Method. If the current year testing method is currently being used, enter the date it was first effective (used for purposes of applying the five year restriction on amending to the prior year testing method):
1. [ ] ADP test: (may not be selected with 44.a.)
2. [ ] ACP test: (may not be selected with 44.b.) 4345. LOANS TO PARTICIPANTS (Plan Section 7.6))
a. [ ] New loans are NOT permitted.
b. [ ] New loans are permitted. NOTE: Regardless of whether new loans are permitted , if the Plan permits rollovers, then the Administrator may, in a uniform and nondiscriminatory manner, accept rollovers of loans into this Plan.
Current Year Testing Method. Paragraph 21.2(b)
Current Year Testing Method. The Plan will use the Current Year Testing Method in running the ADP test. If the Current Year Testing Method is elected, the ADP of the Nonhighly Compensated Group for the first Plan Year is calculated using current year data, unless otherwise designated below. Deemed 3% used for first Plan Year. Instead of using actual current year data for the first Plan Year, the ADP of the Nonhighly Compensated Group for the first Plan Year the 401(k) Plan is effective is deemed to be 3%.
