The IRS has found discriminatory plan designs among some defined benefit and defined contribution plans, as well as DB/DC combination plans. The IRS made the report on a portion of its Retirement Plans website, which it updated on April 1.
The discriminatory plan designs the IRS identified are among plans that:
The IRS says that it has found that more plans using such a plan design, or using variations that produce the same result.
The discriminatory plan designs the IRS identified are among plans that:
- provide significant benefits to the highly compensated employees (HCEs) and a specified group of non-highly compensated employees (NHCEs) who work very few hours or receive very little compensation; and
- exclude other NHCEs from plan participation.
The IRS says that it has found that more plans using such a plan design, or using variations that produce the same result.
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