Actual Deferral Percentage

Business, Legal & Accounting Glossary

Definition: Actual Deferral Percentage


Actual Deferral Percentage

Quick Summary of Actual Deferral Percentage


A factor used in the testing of 401(k) salary deferral plans to determine whether they exceed the discrimination guidelines set forth in the tax code. 401(k) plans that allow the more highly compensated employees to contribute a higher proportion of their income, including the employer contribution, than the percentage contributed by and on behalf of lower paid employees are deemed to be discriminatory and will be disqualified if not corrected.




Synonyms For Actual Deferral Percentage


ADP


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December 06, 2021 https://payrollheaven.com/define/actual-deferral-percentage/.
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https://payrollheaven.com/define/actual-deferral-percentage/ (accessed: December 06, 2021).
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Actual Deferral Percentage. PayrollHeaven.com. Retrieved December 06, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/actual-deferral-percentage/

Definition Sources


Definitions for Actual Deferral Percentage 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 | 1 Views.