Jump to content

DCAP Discrimination issues


Recommended Posts

Guest JerseyGirl
Posted

If all the employees of a company are considered Highly Compensated (earnings in excess of $90,000.00 annually), and several elect to participate in DCAP, does this pose any problems with the 55% average benefits test?

Guest b2kates
Posted

I do not believe there is any direct guidance on this; however, analogizing to the 401K world, the IRS has determined that HCE only employers do not fail the discrimination test since there are no nonHCE at the employer.

Hope this helps.

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
×
×
  • Create New...

Important Information

Terms of Use