What is 401k Discrimination Testing?
JANUARY 15, 2019
Every year, the Employee Retirement Income Security Act ( ERISA ) requires employers to undergo 401k discrimination testing to ensure plans are not discriminating against lower-income employees. What is a 401k discrimination testing? The Actual Contribution Percentage (ACP) is another variation of 401k discrimination testing. A common fear for HCEs is that their plan will fail discrimination tests. The post What is 401k Discrimination Testing?