actual contribution percentage test (ACP test)
Definition
Use this term in a sentence
“ You should try and figure out a way to make an actual contribution percentage test tell you the best way to proceed. ”
“ The actual contribution percentage test was a fairness test to ensure that low wage employees were benefiting equally as the higher paid employees. ”
“ In order to continue to offer their 401k plan to their employees, the company had to make sure they could pass an actual contribution percentage test. ”