easy · Certified Financial Planner General Principles
A certificant discovers that the Nguyen family's 401(k) plan fails the Actual Deferral Percentage (ADP) test by 1.5 percentage points for 2026.
Which action is the most appropriate 'structural fix' to prevent future failures?
- Increase the compensation of all non-highly compensated employees.
- Distribute the excess contributions to the highly compensated employees.
- Reclassify the highly compensated employees as independent contractors.
- Adopt a safe harbor plan design with a 3% nonelective contribution.
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