When ADP/ACP Testing Fails, 401k Fiduciaries Should Understand Their Options

March 15 was the deadline for most 401k plans to distribute 2015 ADP/ACP test corrections in order to avoid a 10% IRS excise tax. Small business 401k fiduciaries do not need to settle for annual ADP/ACP test failures. There are many ways ADP/ACP test returns can be avoided or reduced. Once a fiduciary understands these options, they can discuss them with their 401k provider.

Fiduciary Tip of the Week

Even when you hire a firm like Employee Fiduciary to handle participant transactions, you’re still ultimately responsible for the proper administration of your retirement plan. Check out this article from the IRS to ensure you’re keeping up with the recordkeeping requirements.

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