401(k) Plan Nondiscrimination Testing: Guidance for Employee Benefits Counsel
Meeting IRS Requirements, Avoiding Corrective Distributions, Evaluating Safe Harbor Plans, Navigating Multiemployer Plan Complexities
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will provide employee benefits attorneys and plan sponsors with detailed guidance on performing nondiscrimination testing on 401(k) plans. The panel will review the minimum coverage, ADP and ACP tests for ensuring compliance with IRS nondiscrimination requirements, explain the benefits and costs of adopting a safe harbor plan design, and outline the complex legal issues involved in multiemployer plans.
- Nondiscrimination rules under Section 401
- Understanding controlled group rules
- Understanding aggregation and disaggregation rules
- Nondiscrimination testing
- Minimum coverage test
- Ratio percentage test
- Average benefits test
- Actual deferral percentage (ADP) test for HCEs
- Actual contribution percentage (ACP) test for HCEs
- Cross testing
- Benefits, rights and features
- Minimum coverage test
- Safe harbor plan designs: risks and opportunities
- Multiemployer plan issues
- Corrective action for noncompliant plans
The panel will review these and other key issues:
- How can plan sponsors maximize benefits for HCEs without violating the nondiscrimination rules?
- What advantages does a cross-tested safe harbor plan offer?
- What special rules and considerations apply to multiemployer plans?
David R. Godofsky
Alston & Bird
Mr. Godofsky is the leader of the firm's Employee Benefits & Executive Compensation Group. He has a... | Read More
Mr. Godofsky is the leader of the firm's Employee Benefits & Executive Compensation Group. He has a multidisciplinary practice that is unique in the U.S. His ability to integrate legal analysis with cost, funding, administration and benefit design considerations is informed by his education and years of experience as an actuary and consultant. Mr. Godofsky is also a member of a team of litigators who have represented several major employers in cutting-edge class action litigation and other “bet the company” litigation matters.Close
Marcia S. Wagner
Wagner Law Group
Ms. Wagner is recognized as an expert in a variety of employee benefits issues and executive compensation matters,... | Read More
Ms. Wagner is recognized as an expert in a variety of employee benefits issues and executive compensation matters, including qualified and non-qualified retirement plans, all forms of deferred compensation, and welfare benefit arrangements. She was appointed to the IRS Tax Exempt & Government Entities Advisory Committee and is a past Chair of its Employee Plans subcommittee. Ms. Wagner has written hundreds of articles and 14 books and is widely quoted in business publications as well as being a frequent guest on televised media outlets.Close