SunGard Relius has posted a
Technical Update that provides a review of the rules and recent law changes relating to 401(k) plan corrective distributions for failed ADP (Actual Deferral Percentage) and ACP (Actual Contribution Percentage) tests for the prior plan year. According to SunGard Relius, "It is an annual ritual that during the first few months of each new calendar year, 401(k) plan administrators calculate and complete corrective distributions for failed ADP and ACP tests for the prior plan year (typically the calendar year), and excess deferrals for the prior calendar year."