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Retirement Plan Testing & Design

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Qualified retirement plans must pass rigorous nondiscrimination tests annually to ensure that they maintain their tax advantaged status. Most nondiscrimination testing is performed by the plan’s recordkeeper or TPA, at what appears to be a reasonable price. However, these testing services are normally performed using data that is minimally validated and only under ‘plain vanilla’ circumstances.

We are different. Our professionals validate test data to much higher degree, and we focus on the more complex testing situations, involving, for example, controlled groups, plan mergers and spin-offs, and QSLOBs. Under these circumstances, we add value that is out of scope for the typical recordkeeper or TPA.

The non-discrimination testing and analysis we can assist with include:

  • IRC section 401(k) and 401(m) Actual Deferral Percentage (ADP) Test and Actual Contribution Percentage (ACP) Test
  • IRC section 410(b) Minimum Coverage Requirements (including 410(b)(6) transition rules for acquired plans)
  • IRC section 415 Maximum Limits for Qualified Plans Test
  • IRC section 416 Top-Heavy Test
  • IRC section 404 Employer Deductibility Test
  • IRC section 401(a)(30) Maximum Elective Deferral Amounts Test
  • IRC section 401(a)(4) General tests and Benefits, Rights and Features analyses.
  • IRC section 414(r) QSLOB analysis and testing