401(a)(26)- meaningful benefits

[Guest lerieleech]

I would like to get an idea of how different people are interpreting "meaningful benefits" (I think that's the correct terminology) for the purposes of headcount in the 401(a)(26) test.

I know IRS hasn't said what meaningful benefits are. What are your feelings on this? Have you heard anything that IRS has said informally?

Thanks.

[Guest merlin]

An accrual of 0.5% of compensation per year is considered meaningful, according to a Quality Assurance Memo from Paul Shultz in 6/02.

[Guest lerieleech]

Thank you.

It is a lot easier to deal with actual numbers.