Nondiscrimination testing
Annual testing required by the IRS that assesses if all employees have equal access to a retirement plan. Nondiscrimination testing requires that employees of a certain status (highly compensated employees and key employees) stay within a specific contribution rate, as determined by the contribution rate of non-highly compensated employees.
Article Reviewed By
Vicki Waun, QPA, QKC, QKA, CMFC, CRPS, CEBS, CPC, is a Senior Legal Product Analyst at Human Interest and has over 20 years experience with recordkeeping qualified plans, along with extensive experience in compliance testing. She earned her BSBA in Accounting from Old Dominion University and is a member of ASPPA.
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