| Non-Discrimination
Testing |
| |
|
Testing of 401(k) contributions
made by highly compensated employees vs. non-highly
compensated employees.
|
| Top Heavy Testing |
| |
|
Testing of account balances for
key employees vs. non-key employees.
|
| Form 5500 Preparation |
| |
|
Preparation of Form 5500 with
required schedules, signature ready for plan administrator.
|
| Calendar Year
Limitation on Elective Deferrals |
| |
|
Testing to make sure that no
individual employee contributed more than the current
year 401(k) contribution maximum.
|
| Maximum Annual
Additions |
| |
|
Testing to make sure that no
employee received total plan contributions that exceed
the IRS Limit.
|
| Coverage Test
|
| |
|
This test ensures that non-highly
compensated employees benefited according to IRS guidelines.
|
| Deduction Limitation |
| |
|
Deduction Limitation testing
ensures that total contributions do not exceed the deduction
limit as a percentage of total covered compensation.
|
| Cross Tested Allocation
Formulas |
| |
|
Subject to cross testing formulas,
IRS Regulations allow owner and executive employees
to receive significantly larger contribution allocations
than under traditional allocation methods.
|
