HONGKONGDIR

HOMECompaniesDictionaryFAQs

Home » Dictionary » Retirement » actual contribution percentage test (ACP test)

Actual Contribution Percentage Test (ACP Test)

Definition
A test used to determine whether company contributions to a 401K retirement plan favor highly compensated employees. The purpose of the test is to determine whether all participants are benefiting equally from the plan. If a plan fails the test, it will no longer be considered a qualified plan by the IRS.

Nearby Terms
Similar companies
Copyright © 2013 hongkongdir.com All Rights Reserved.
Provides public information about companies in the Hong Kong.