ADP/ACP TEST
The regular non-discrimination test for 401(k) plans strictly given by the IRS to be sure that a plan does not unduly benefit highly compensated employees and owners at the expense of other employees. The Actual Contribution Percentage (ACP) and Actual Deferral Percentage (ADP) test must be passed for the purpose of satisfying the IRS' non-discrimination requirements if the the plan is to push through.
If the plan wouldn't make it through the test, the employer is obliged to conduct corrective action for the protection of its qualified status within the 12-month period immediately after the end of the plan year wherein the oversight took place.
POPULAR TERMS
Position
It refers to the amount of security either owned or borrowed by a person or a dealer. It’s basically a trade that an investor currently holds ...
Centrally Planned Economy
Economic system in which the state or government make economic decisions. It aims to regulate what is produced and how resources are used and distr ...
Debtor Nation
A nation with a cumulative balance of payments deficit. A debtor nation has negative net investment after recording all of the financial transactio ...
Fool In The Shower
The notion that policies designed to change the economy’s course should be done slowly, instead of all at once. The phrase is attributed to N ...
Discounted Cash Flow - DCF
A valuation method used to estimate the attractiveness of an investment opportunity. Discounted cash flow (DCF) analysis uses future free cash flow ...
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Can You Afford the Renovation Cost?
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Buying a Home: Everybody’s Goal
Since childhood, Selena has always dreamed of owning a large farm house surrounded with lots of animals – every kind of animal the world has ...
So You Want A Job in Financial Careers: A Guide
In this tutorial, we will explore the different kinds of financial careers, the various basics of the financial industry, what you need to do in or ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 06:30 | Tertiary Industry Index | Apr | |
| 08:00 | Wholesale Price Index | May | |
| 08:30 | Producer & Import Prices | May | |
| 09:00 | SECO Consumer Confidence | May | |
| 10:00 | Trade Balance | Apr | |
| 11:00 | Current Account (sa) | Apr | |
| 11:00 | Industrial Production | Apr | |
| 14:15 | Housing Starts | May | |
| 14:30 | NY Fed Empire State manufacturing index | Jun |
