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actual deferral percentageDefinition A factor used in the testing of 401(k) salary deferral plans to determine whether they exceed the discrimination guidelines set forth in the tax code. 401(k) plans that allow the more highl [..]
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actual deferral percentageActual Deferral Percentage (ADP) is an annual test in a 401(k) plan that compares the average salary deferrals of highly compensated employees (HCEs) to that of nonhighly compensated employees (NHCEs) [..]
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