How Do I Get More Employees to Actively Participate in Our Plan?  - CLEO Skip to main content


You just received the dreaded call from your friendly 401(k) third-party administrator – your average deferral percentage (ADP) test is failing…again! Some of your highly compensated employees will be disappointed to learn that money they deferred will be returned to them and is taxable.

A common reason for a failed test is a low employee participation rate among the non-highly compensated employees. The million dollar question is: ‘How can I increase employee participation?’

Read Article