EBP2362. Testing Your Limits in Qualified Plans

Qualified plans may not discriminate in favor of Highly Compensated Employees. There are a number of annual nondiscrimination testing requirements that plans must satisfy to prove compliance with this requirement. This session is intended go beyond the basic tests to explore alternative methodologies and advanced testing techniques in ADP/ACP testing, Coverage testing under 410(b), and non-safe harbor plan design testing under 401(a)(4). The session will include identification of unintentional plan design features that can create complexity, potential impact of SECURE 2.0 changes on nondiscrimination testing, and highlights on tax compliance testing requirements for plan auditors.

Learning Objectives:

• Understand consequences of plan design features on testing requirements
• Assess alternative strategies to change a preliminarily "failing" test to a "passing" test
• Evaluate options for failing tests
• Identify potential impact of SECURE 2.0 on testing