what are the actual deferral percentage adp actual contribution percentage acp tests 
the actual deferral percentage adp and actual contribution percentage acp tests are two tests that companies must conduct to ensure that their 401 k plans don t unfairly benefit highly paid employees at the expense of others companies that offer 401 k plans must conduct the tests in order to retain the qualified status of their plans under irs rules and the employee retirement income security act erisa if the plan fails either test the employer must take corrective action in the 12 month period following the close of the plan year in which the oversight occurred failure to do so can result in the irs imposing pecuniary penalty fees plan disqualification and fiduciary liability on the part of the employer 