FAQ 30: ADP--ACP borrowing-Borrow from 100 vested match in ACP to pass ADP


Can the system borrow from 100% vested match in the ACP to help pass ADP?


In the Correction Setup screen is an option called Borrow from ACP to solve ADP. When the option is selected, the system will borrow/shift NHCE ACP Borrowed % and added it to the NHCE ADP STD Pass %. The borrowing of the NHCE ACP percentage will only occurs if the ACP test Passes and there is a surplus of NHCE percentage to borrow/shift to the ADP NHCE percentage. The borrowing from ACP will only occur if it can PASS ADP, not lessen the ADP failure.

The option will only enable if the plan uses the same testing method for ADP and ACP tests and the Vesting for Match must be 'Immediate - 100%'