Jump to content
Sign in to follow this  
Gary

plan design

Recommended Posts

if a plan fails 401(l) - does it have to be amended in order to remain qualified?

Share this post


Link to post
Share on other sites

Plans are not required to comply with 401(l) for qualification. 401(l) is called permitted disparity because it works just that way--you are permitted to ignore the disparity in benefits for non-discrimination purposes.

In most cases, plans which use 401(l) permitted disparity do so because they want to have a benefit which will comply with the safe harbors of 401(a)(4) and therefore will not require non-discrimination testing using the general rule.

If a plan provides integrated style benefits and does not comply with 401(l), either intentionally or unintentionally, it must be tested for non-discrimination re the amount of benefits under the general test of 401(a)(4).

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...