401(k) Compliance Testing Explained for Plan Sponsors
Nondiscrimination testing (ADP and ACP): Learn how these tests ensure your plan doesn’t disproportionately benefit owners or highly compensated employees.
Top-heavy requirements: Understand how top‑heavy testing works, what the 60% threshold means, and when additional contributions may be required.
Safe harbor plans: See how adopting a safe harbor design can help plans automatically satisfy key nondiscrimination and top‑heavy testing requirements.
A 401(k) plan can do more than help your employees save for retirement—it can also be a strategic tool for growing your business. Regular compliance testing helps keep the plan running smoothly, protecting your investment and ensuring the plan’s success.
Download this PDF resource to understand the most common 401(k) compliance tests, when they apply, and how options like safe harbor plans can help simplify annual testing.