Discrimination Testing Free Passes

Tip of the Day

The general discrimination test of Sec. 410(b) does not have to be done under the following four circumstances:

1.  Plan has no includable non-highly compensated employees (NHCEs) during the year.

2.  Plan has no highly compensated employees (HCEs) benefiting during the year.

3.  Employer had a merger or acquisition during the year or previous plan year.

4.  Section 410(b) discrimination testing has been performed within the past two years (3 Year Testing Cycle rule) . . .

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