Annual Compliance Testing: Need a Hand?

aba_pab_sept16_images_rdcr_2In January, Voya begins annual testing for 401(k) plans to ensure that they are in compliance with important Internal Revenue Code requirements. On or about January 9, you should have received an email from asking if you would like to take advantage of compliance services offered by the ABA Retirement Funds Program’s (“the Program”) compliance services, including nondiscrimination testing and employer contribution calculations.

How do I take advantage of the Program’s Compliance Services?

Just reply to the email you received on or about January 9th and request that the compliance team send an Employee and Contribution census to the plan administrator via encrypted email. Complete and return the census along with the 401(k) Discrimination testing and contribution calculation request form indicating exactly which services you would like.

Once we receive this information and the completed form, we will conduct the tests and notify you of the results. If any compliance issues are identified, we will also notify you of these and any corrective measures your plan may need to take to address the issues. Generally, upon receiving the census information in good order, tests and/or contribution calculations are returned to you via encrypted email within 15 business days.

The Program’s compliance testing and contribution calculation services are offered to our clients at no additional cost. For more information on compliance testing, please visit our online Plan Administrator Guide at and see the section called “Compliance and Communications.”

NOTE: If you sponsor a 401(k) plan intended to meet the safe harbor requirement in 2016, nondiscrimination testing is generally not required.

What is the census for?

The census helps the Program gather information needed to act on certain requests, such as:

  • 401(k) plan nondiscrimination testing (if applicable): Non safe harbor 401(k) plans are required to perform average deferral percentage (ADP) and average contribution percentage (ACP) testing annually.
  • Contribution calculation: The Program can assist plan sponsors with calculating their employer contributions.
  • Top-heavy testing: The Program will provide testing to determine if the plan is top heavy (60% or more of the total plan assets held by “key” employees) and instruct plan sponsors on the proper remedy.

What do I need to do next?

Detailed instructions are provided in the email noted above (or letter if we do not have your email address on file), but if you request a nondiscrimination test and/or a contribution calculation please make sure to:

  • Respond to the email or submit the 401(k) Discrimination Testing and Contribution Calculation Request Form.
  • Submit the Employee and Contribution Census by February 11 after receiving it via email from the Program.
    • If you have not previously provided the Program with a participant’s termination date or the hire or rehire date for your newly eligible employees, use the census to do so.
    • If you have made a “Top Paid Group” election in your adoption agreement, complete and sign the Top Paid Group Worksheet that was provided in the email previously mentioned.

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