Plan compliance

Among the many options available for nondiscrimination testing is the "otherwise excludable" option, under which the employees who do not satisfy minimum statutory requirements are tested separately from other plan participants. The myriad of methods, options, and possibilities available f...

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Bibliographic Details
Published inJournal of pension benefits Vol. 9; no. 3; p. 75
Main Authors Dorsa, Lorraine, Poje, Thomas E
Format Journal Article
LanguageEnglish
Published New York Aspen Publishers, Inc 01.04.2002
Subjects
Age
Compliance
Corporate taxes
Deferred compensation
Employees
Nondiscrimination tests
Retirement plans
United States > US
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Summary:Among the many options available for nondiscrimination testing is the "otherwise excludable" option, under which the employees who do not satisfy minimum statutory requirements are tested separately from other plan participants. The myriad of methods, options, and possibilities available for nondiscrimination testing maybe so overwhelming that an administrator is tempted to say it is just too complicated and simply use the same plain vanilla method all the time but there are some testing options that are extremely effective and, as nondiscrimination testing rules go, not all that complicated. One of these is the "otherwise excludable" option. This option allows a plan whose eligibility provisions are more liberal than the statutory requirements to treat the plan, for testing purposes, as two plans - one benefiting employees who meet the statutory requirements and another benefiting employees who meet the plan's eligibility requirements but do not meet the statutory requirements (called the otherwise excludable).
ISSN:1069-4064