Average Deferral Percentage definition

Average Deferral Percentage. The Average Percentage calculated using Deferrals allocated to Participants as of a date within the Plan Year.

Average Deferral Percentage. The percentage calculated in accordance with Section 12.1.

Average Deferral Percentage means the average of the Deferral Percentages of each Participant in a group of Participants.

Examples of Average Deferral Percentage in a sentence

• Multiple use does not occur if either the Average Deferral Percentage or Actual Contribution Percentage of the Highly Compensated Employees does not exceed 1.25 multiplied by the Actual Deferral Percentage and the Actual Contribution Percentage of the Nonhighly Compensated Employees.

• Under each of these tests, the Average Deferral Percentage (ADP) and the Average Contribution Percentage (ACP) for Highly Compensated Employees may not exceed the ADP and ACP for Non-Highly Compensated Employees by more than the amount permitted by application of the basic limit or the alternative limit.

• With respect to each Plan Year, an Employer’s Plan which offers a Code Section 401(k) cash or deferred arrangement and any contributions made thereunder must satisfy the Average Deferral Percentage Test (“ADP Test”) and, if applicable, the Average Contribution Percentage Test (“ACP Test”).

• In lieu of reducing the applicable average for the Highly Compensated Employees, the Employer may elect to make an additional Qualified Non-Elective Contribution (QNEC) and/or a Qualified Matching Contribution (QMAC) for Non-Highly Compensated Employees to increase their Average Deferral Percentage and/or Average Contribution Percentage to the point where the Plan satisfies the ADP and/or the ACP Test.

• The Average Deferral Percentage for Participants who are Highly Compensated Employees for the Plan Year does not exceed the Average Deferral Percentage for Participants who are non-Highly Compensated Employees for the same Plan Year by more than 2 percentage points provided that the Average Deferral Percentage for Participants who are Highly Compensated Employees is not more than 2.0 times the Average Deferral Percentage for Participants who are non-Highly Compensated Employees.

More Definitions of Average Deferral Percentage

Average Deferral Percentage or "ADP" means, separately, the average of the Calculated Percentage calculated for Participants within the HCE Group and the NHCE Group, respectively, for a Plan Year.

Average Deferral Percentage. ("ADP") means the average of the Deferral Percentages of a group of Eligible Participants.

Average Deferral Percentage means the average, computed to the nearest one-hundredth of one percent, of the Actual Deferral Percentages (including zero percentages) for Participants within the specified group.

Average Deferral Percentage means the average of the Deferral Percentages of a group of Participants.

Average Deferral Percentage means the average of the ratios, calculated separately for each applicable Employee, by which the amount of the Salary Reduction Contributions contributed to the Trust on behalf of such Employee for a given Plan Year bears to the amount of such Employee's compensation (as defined in Section 414(s) of the Internal Revenue Code) for such Plan Year, or, at the election of the Administrative Committee, for the portion of the Plan Year during which the Employee was eligible to participate in the cash or deferred arrangement under the Plan.

Average Deferral Percentage means the average ratio determined under Section 4.6(b).

Average Deferral Percentage means the average (expressed as a percentage) of the Deferral Percentages of the Eligible Participants in a group.