Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. when a 401(k) plan does not pass the adp test, whi

When a 401(k) plan does not pass the ADP test, which one of the following...

70.2K

Verified Solution

Question

Accounting

When a 401(k) plan does not pass the ADP test, which one of the following statements correctly describes one option to bring the plan into compliance with Section 401(k)?

a. The employer can make nonforfeitable contributions to the nonhighly compensated employees.

b. Highly compensated employees can defer until the following year the tax deduction equal to the excess in elective contributions.

c. Nonhighly compensated employees' deferrals can be recharacterized as after-tax contributions.

d. The plan can adopt a safe harbor, with the employer contributing either a matching contribution equal to 2% of compensation or a nonelective contribution of 3% of compensation.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

If work function of a metal is 3 eV and wavelength of subjected radiation to...

Basic Math
1.2K views

A B Shade B n A on the Venn diagram and the universal set U...

Basic Math
1.2K views

latus rectum, and graph the equation.3==; vertex at (0,0)2Directrix the line y:3What is the equation...

Statistics
1.2K views

An appliance manufacturer offers extended warranties on its washers and dryers Based on past sales...

Algebra
1.2K views

Multiply 25 9 COORD 25 9 Simplify your answer Type your answer in the form...

Accounting
1.2K views

I know headquarters wants us to add that new product line,...

Accounting
1.2K views

Q 4 Provide clear, concise answers for the following. (4 points) 1. What is...

Accounting
1.2K views

Smith & sons uses the allowance method of handling its credit losses. It estimates credit...

Accounting
1.2K views

During Year 2, Chico Company earned $1,950 of cash revenue, paid $1,600 of cash expenses,...

Accounting
1.2K views

SUMMARIZE A SUCSSEFFUL OR FAILER STORY OF ERP IMPLEMENTATION? ONE PAGE ONLY IN POINT

Finance
1.2K views

A firm's bonds have a maturity of 10 years with a $1,000 face value, have...

Finance
1.2K views

Sarah would like to make a single investment and have $1.8 million at the time...