Home > Terms > English, UK (UE) > Actual deferral percentage (ADP)

Actual deferral percentage (ADP)

Percentage of wages deferred by employees participating in a salary reduction plan (e.g., 401(k) plan). The IRS uses the ADP to determine whether the plan meets the agency’s nondiscrimination requirements.

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  • Part of Speech: noun
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  • Blossary:
  • Industry/Domain: Accounting
  • Category: Payroll
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