Does MDB401k help with IRS 401k compliance testing?
Yes — and you can run year-to-date tests as often as you want to identify any trends toward noncompliance, so you can fix the problem before the final year-end tests. — MDB401k runs the all-important ADP (average deferral percentage), CAP (actual contribution percentage), multiple-use and top-heavy compliance tests that every 401k plan must pass at year’s end. Although your plan only has to pass these tests at the end of every plan year, MDB401k can run year-to-date tests as often as you like (we recommend monthly) so you can spot noncompliance trends — long before mandatory year-end testing is done. Running practice compliance tests is as easy as a mouse click! Consider 401(k) Easy as your in-house 401k compliance Early Warning Radar!
