What To Do If You Think Your Plan Will Fail Discrimination


It's the end of July, and right about now, I get some panicked questions from employers regarding their retirement plans. It's really to be expected. For calendar-year plans, Forms 5500 are due, so there are questions there. For those plans that required audit (new especially for 403(b) plans for 2009), the audits produce a host of issues that surface from close inspection. As well, employers start to receive their retirement plan's mid-year discrimination tests. The results there give an indication if their plans will pass the discrimination tests at the end of the year.

What if it looks like an employer might fail its discrimination tests at the end of the year? It could mean there is low participation from its non-highly compensated employees (NHCEs). This is the time that an employer should consider "working around" failed discrimination tests. Some things to investigate...

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Constangy, Brooks, Smith & Prophete, LLP | Attorney Advertising

Written by:


Constangy, Brooks, Smith & Prophete, LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.