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Employee Benefits > Actual Deferral Percentage Test (ADP)

The following information is about Actual Deferral Percentage Test (ADP).

Actual Deferral Percentage Test (ADP) Defined

A test applicable to 401(k) plans which works to limit the average rate of pre-tax deferrals made by highly-paid participants in relation to the average rate of pre-tax deferrals by lower-paid participants.

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