FAQ 592: ADP--Gap period earnings-How to calculate


What do we code on the ADP setup screen to tell the test to calculate gap period earnings?


On the Corrections Setup screen, enter an Interest Calculation Date that is after the Valuation Date coded in the plan specs. For example, with a 12/31 plan year end, entering 3/15 will calculate gap period earnings from 12/31 to 3/15 based on the 10% safe harbor method outlined in the 401k regs.