Actual Contribution Percentage Test

Business, Legal & Accounting Glossary

Definition: Actual Contribution Percentage Test


Actual Contribution Percentage Test

Quick Summary of Actual Contribution Percentage Test


A test used to determine whether company contributions to a 401K retirement plan favor highly compensated employees. The purpose of the test is to determine whether all participants are benefiting equally from the plan. If a plan fails the test, it will no longer be considered a qualified plan by the IRS.




Synonyms For Actual Contribution Percentage Test


ACP Test


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Actual Contribution Percentage Test. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 07, 2021 https://payrollheaven.com/define/actual-contribution-percentage-test/.
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Actual Contribution Percentage Test. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/actual-contribution-percentage-test/ (accessed: December 07, 2021).
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Actual Contribution Percentage Test. PayrollHeaven.com. Retrieved December 07, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/actual-contribution-percentage-test/

Definition Sources


Definitions for Actual Contribution Percentage Test are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 19th November, 2021 | 0 Views.