Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) are the most frequent compliant tests being performed in 401(k) Plans.
ADP is testing 401(k) deferrals among highly and non-highly participants, and the second separate test (ACP) applies when there are after-tax or employer matching contributions. The testing has gotten easier to pass.
![](https://i0.wp.com/plansponsoradviser.com/wp-content/uploads/2023/07/adp.jpg?fit=612%2C408&ssl=1)