Annual Testing

Explains how plan sponsors can complete the annual census verification, including deadlines, adding or terminating employees, and correcting errors.

Explains how IRS non-discrimination testing works, who qualifies as a Highly Compensated Employee (HCE), what information employers must provide, what happens if the plan fails testing, and how adopting a Safe Harbor provision can help avoid testing requirements.

Explains how the Top-Heavy test works, who counts as a key employee, how to access your report, and what corrective contributions may be required if your plan is top-heavy.

Explains what happens if your 401(k) plan fails annual ADP/ACP testing, outlines available correction methods (refunds, QNECs, or retroactive safe harbor contributions), and provides important deadlines and next steps for plan administrators.