How does MDB401k help us keep our 401k in synch with IRS regulations?
We’ve built several safeguards into the MDB401k run-it-yourself 401k system to help you keep your 401k in line with ever-changing IRS regulations: — We program relevant IRS regulations about contribution limits and compliance testing, among other things, into your MDB401k software. For instance, the software won’t let you enter a contribution for a participant that will push the participant’s year-to-date contribution total over the allowable maximum (and it tells you how much, if anything, the participant CAN contribute without exceeding the maximum). — MDB401k runs the all-important ADP (average deferral percentage), ACP (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 the 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
