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ERISA Outline Book Index

CAFETERIA PLANS

* Automatic enrollment

- Deemed §125 compensation for employees who do not have option to elect out of automatic enrollment health plan, (Ch1A/Def-Compensation/PtA.6.e.)

- Plan amendment required to include deemed §125 compensation, (Ch1A/Def-Compensation/PtA.6.e.1)a))

* Definition of a cafeteria plan, (Ch1A/Def-CafeteriaPlan)

- Must be a choice between cash and non-taxable benefits in order for there to be a cafeteria plan, (Ch1A/Def-CafeteriaPlan)

* Reporting requirements for cafeteria plans, see FORM 5500

CANADIAN RETIREMENT PLANS, see NONRESIDENT ALIENS

CAPITAL GAINS

* Election for certain lump sum distributions, see LUMP SUM DISTRIBUTIONS

* Employer securities distributed from plan: sale of distributed securities, see EMPLOYER SECURITIES

CASH BALANCE PLANS/ STATUTORY HYBRID PLANS

* Accruals under cash balance plans, see ACCRUAL OF BENEFITS

* Age discrimination for cash balance and other hybrid plans, see AGE DISCRIMINATION

* Definition of cash balance plan, (Ch1A/Def-CashBalancePlan)

* Hypothetical account balance may be treated as present value of vested benefit for distributions made after August 17, 2006 (safe-harbor present value rule), (Ch6/SecIII/PtC.4.b.)

- Additional rules for applying safe-harbor present value rule, (Ch6/SecIII/PtC.4.c.)

* IRS memorandum on definitely determinable benefits under cash balance plans, (Ch3A/SecIII/PtA.6.b.)

* Market rate of return rules, (Ch3B/SecIX/PtB.2.)

* Statutory hybrid plan/statutory hybrid plan formula/accumulated benefit/lump-sum-based benefit formula definition, (Ch3B/SecIX/PtB.1.)

* Whipsaw issue eliminated by PPA 2006, (Ch6/SecIII/PtC.4.a.)

CASH OR DEFERRED ARRANGEMENTS, see SECTION 401(k) PLANS

CASH-OUT DISTRIBUTIONS, see VESTING RULES

CATCH-UP CONTRIBUTIONS

* Administrative issues for plans that permit catch-up contributions, (Ch11/SecXI/PtB.4.)

* ADP test: treatment of catch-up contributions, see ADP AND ACP TESTING

* Aggregation of plans to determine whether catch-up limit is exceeded, (Ch11/SecXI/PtF.2.c.)

* Annual catch-up contribution limit, (Ch11/SecXI/PtB.2.)

- Calendar year determination, (Ch11/SecXI/PtC)

- Consequences of exceeding the annual limit, (Ch11/SecXI/PtB.3.c.)

- May not exceed compensation, (Ch11/SecXI/PtB.2.e.)

- Table of dollar limits, (Ch17/SecII/PtL)

* Calendar year limit on catch-up contributions, (Ch11/SecXI/PtC)

* Coverage testing: treatment of catch-up contributions, see COVERAGE TESTING

* Definition of catch-up contributions, (Ch1A/Def-Catch-upContributions)

* Designated Roth contributions may be catch-up contributions, (Ch11/SecXV/PtA.2.b.)

* IRAs: catch-up contribution option for IRA owners over age 50, see IRAs

* Lost opportunity to make catch-up contributions: EPCRS correction method, (Ch15/SecVI/PtC.4.b.(3)(b))

* Matching contributions may be made on catch-up contributions, (Ch11/SecXI/PtB.4.h.)

* Noncalendar plan year: how catch-up limit is administered, (Ch11/SecXI/PtC.1.)

* Nondiscrimination testing issues relating to catch-up contributions, (Ch3A/SecIII/PtA.1.c.)

* Other limit must be exceeded before elective deferrals are treated as catch-up contributions, (Ch11/SecXI/PtB.3.b.)

- Plan imposed limits, (Ch11/SecXI/PtB.3.b.2))

◆ Must be set forth in document or authorized by document to be set under administrative procedures, (Ch11/SecXI/PtB.3.b.2)a))

- Statutory limits, (Ch11/SecXI/PtB.3.b.1))

* Plan document language needed to authorize catch-up contributions, (Ch11/SecXI/PtB.5.)

* Plan-imposed limit on elective deferrals

- Does not apply to catch-up contributions, (Ch3A/SecII/PtD.5.e.)

- Treatment as excess allocation under EPCRS procedure, (Ch15/SecVI/PtB.6.d.(1)(a))

* SARSEPs may permit catch-up contributions, (Ch11/SecXI/PtB.4.f.)

* Section 403(b) plans may permit catch-up contributions, (Ch16/SecII/PtI.3.), (Ch16/SecII/PtI.3.)

* Separate accounting of catch-up contributions apart from other elective deferrals not necessary, (Ch11/SecXI/PtB.4.g.)

* SIMPLE-401(k) plans may permit catch-up contributions, (Ch11/SecXI/PtB.4.e.)

* Top heavy rules: application to catch-up contributions, see TOP HEAVY RULES

* Types of plans that may permit catch-up contributions, (Ch16/SecII/PtI.3.)

* Universal availability requirement, (Ch3A/SecIII/PtA.1.c.)

* Who is eligible to make catch-up contributions? (Ch11/SecXI/PtB.3.)

- Age 50 requirement, (Ch11/SecXI/PtB.3.a.)

- Death before 50th birthday, (Ch11/SecXI/PtB.3.a.3))

- Termination of employment before 50th birthday, (Ch11/SecXI/PtB.3.a.2))

- Treated as 50 for entire calendar year if 50th birthday occurs in that year, (Ch11/SecXI/PtB.3.a.)

CHANGE IN FORM OF ENTITY

* Unincorporated business incorporates or vice versa

- Effect on benefit accrual, (Ch3B/SecIII/PtK)

- Effect on earned income calculation, (Ch1A/Def-EarnedIncome/PtF)

- Effect on employer deduction calculation, (Ch7/SecXVI/PtH.14.)

CHARITABLE DEDUCTIONS, see ESTATE AND GIFT TAXES

CHARITABLE REMAINDER UNITRUST (CRUT), see ESTATE AND GIFT TAXES

CHECKLISTS

* ADP and ACP testing issues

- 2018 plan years, (Ch11/AppC.1.)

- 2017 plan years, (Ch11/AppC.¶2.)

* Audit issues, (Ch15/SecVI/PtF)

* Classifications of different types of plans, (Ch15/SecIV/PtA)

* Compensation definitions, (Ch15/SecIV/PtG)

* Coverage and nondiscrimination testing, (Ch15/SecV/PtB)

* Determination letter procedures, (Ch15/SecIII/PtE)

* Electronic media use for participant notices, elections and other communications, (Ch13A/AppE)

* Employer responsibilities relating to plan sponsorship, (Ch15/SecIV/PtE)

* Mergers and spin-offs, (Ch15/SecVII)

* Minimum funding waiver submission to IRS, (Ch3B/AppD)

* Plan administration checklist, (Ch15/SecIV/PtC)

* Plan design checklist, (Ch15/SecIV/PtB)

* Plan termination checklist, (Ch15/SecVIII/PtA) (DC plans), (Ch15/SecVIII/PtA) (DB plans)

* QDROs, (Ch15/SecIV/PtH)

* "Red flags" in plan design, (Ch15/SecIV/PtI)

* Rehired employee issues, (Ch15/SecIV/PtK)

* Reporting and disclosure requirements, (Ch15/SecIV/PtM)

* Sanctions affecting qualified plans, (Ch14/SecIV/PtN)

* SEPs compared to profit sharing plans, (Ch12/SecAppE)

* Short plan year issues, (Ch15/SecIV/PtE)

* SIMPLE-IRA plans compared to SARSEPS, (Ch12/AppC)

* SIMPLE-IRA plans compared to SIMPLE-401(k) plans, (Ch12/AppB)

* SIMPLE-IRAs, (Ch12/AppA)

* Takeover plan issues, (Ch15/SecIV/PtL)

* USERRA checklist, (Ch15/SecIV/PtJ)

CHURCHES AND CHURCH PLANS, see TAX-EXEMPT ORGANIZATIONS

CIRCULAR 230, see INTERNAL REVENUE SERVICE

CIVIL PENALTIES, see DISCLOSURE TO PARTICIPANTS AND BENEFICIARIES, ENFORCEMENT OF ERISA

CLAIMS PROCEDURE UNDER ERISA, see FIDUCIARY DUTY

CLASS EXEMPTIONS UNDER PROHIBITED TRANSACTION RULES, (Ch14/SecIII/PtA.2.)

CLOSING AGREEMENTS WITH IRS, see PLAN DISQUALIFICATION

CODA, see SECTION 401(k) PLANS

COLLECTIBLES

* Basis generated in account because of deemed distribution, (Ch7/SecIII/PtC.2.c.)

* Deemed distribution if participant-directed account invests in collectibles, (Ch7/SecXI/PtB.4.)

* Definition of collectibles, (Ch7/SecXI/PtA)

* General trust investments not subject to deemed distribution treatment, (Ch7/SecXI/PtC)

* Pre-1982 acquisitions exempt, (Ch7/SecXI/PtB.7.)

* Premature distribution penalty applies, (Ch7/SecXI/PtB.5.)

COLLECTIVE INVESTMENT FUNDS

* Special reporting requirements for plan assets held in, see FORM 5500 SERIES

COLLECTIVELY-BARGAINED EMPLOYEE

* Definition of collectively-bargained employee, (Ch1A/Def-Collectively-BargainedEmployee)

* Good faith bargaining on retirement benefits is required, (Ch1A/Def-Collectively-BargainedEmployee/PtA.1.)

* Professional individuals may not comprise more than 2% of the collective bargaining unit, (Ch1A/Def-Collectively-BargainedEmployee/PtA.3.)

COLLECTIVELY-BARGAINED PLANS

* Collectively-bargained employee, (Ch1A/Def-Collectively-BargainedEmployee)

* Coverage rules applicable to, see COVERAGE TESTING

* Definition of collectively-bargained plan, (Ch1A/Def-Collectively-BargainedPlan)

* Employee organization: definition of, (Ch1A/Def-EmployeeOrganization)

* Multiemployer plans

- Coverage testing issues for multiemployer plans, see COVERAGE TESTING

- Definition of multiemployer plan, (Ch1A/Def-MultiemployerPlan)

- Enforcement of delinquent contributions, see ENFORCEMENT OF ERISA

- Section 415 limits, application of to multiemployer plan, (Ch16/SecII/PtH.6.b.)

- Taft-Hartley Act, (Ch1A/Def-MultiemployerPlan), (Ch1A/Def-MultiemployerPlan)

- Vesting schedules for multiemployer plans, see VESTING RULES

* Retiree health benefits: application of contract law to determine if benefits continue beyond collective bargaining agreement, (Ch13B/SecII/PtH.3.e.)

* SIMPLE-IRA plans, coverage of union employees under, see SIMPLE PLANS

* Top heavy rules, application of to collectively-bargained plans, see TOP HEAVY RULES

COMMON LAW EMPLOYER-EMPLOYEE RELATIONSHIP

* Independent contractor relationship, (Ch1A/Def-MultiemployerPlan)

* Leased employee must be the common law employee of the leasing organization, (Ch1A/Def-LeasedEmployee/PtA.4.)

* Professional Employer Organization (PEO) is not leasing organization if it is not the common law employer of worksite employees, (Ch1A/Def-LeasedEmployee/PtA.4.c.)

- Certified PEO, (Ch1A/Def-LeasedEmployee/PtA.4.b.1))

COMMON PAYMASTER, see COMPENSATION

COMMON TRUST FUNDS

* Special reporting requirements for plan assets held in, see FORM 5500 SERIES

COMMONLY CONTROLLED TRADES OR BUSINESS, see RELATED ORGANIZATIONS (Controlled group of businesses)

COMMUNITY PROPERTY INTERESTS

* Death benefit issues involving community property law, see DEATH BENEFITS

* Definition of community property interest, (Ch1A/Def-CommunityPropertyInterest)

* Excess retirement\ accumulations and distributions under IRC §4980A calculations generally applied without regard to community property, see EXCESS RETIREMENT ACCUMULATIONS AND DISTRIBUTIONS Note: IRC §4980A was repealed effective January 1, 1997.

* Preemption of community property law, see ENFORCEMENT OF ERISA (Preemption)

COMPENSATION

* Accrued compensation, see Section 415 compensation below

* Accrual of benefits, compensation definition used for, see ACCRUAL OF BENEFITS

* Agency arrangements for payment of compensation, (Ch1A/Def-Compensation/PtA.7.g.)

* Allocation of employer contributions, compensation definition used for, see ACCRUAL OF BENEFITS

* Average compensation, see AVERAGE COMPENSATION

* Base compensation, (Ch1B/Def-PermittedDisparity)

* Change in the form of entity

- Individual might have compensation and earned income in same year, (Ch1A/Def-EarnedIncome/PtA.8.), (Ch3B/SecIII/PtK)

* Common paymaster for payment of compensation, (Ch1A/Def-Compensation/PtA.7.h.)

* Compensation ratio test, see Section 414(s) compensation below

* Covered compensation, (Ch1B/Def-PermittedDisparity)

* Deduction limits, compensation definition used to determine, see DEDUCTION LIMITS

* Deemed §125 compensation, (Ch1A/Def-Compensation/PtA.6.e.)

* Definition of compensation, (Ch1A/Def-Compensation)

- Accrual of benefits: definition of compensation used for, see ACCRUAL OF BENEFITS

- Elective deferrals: Compensation from which elective deferrals can be made, (Ch3A/SecII/PtD.2.a.4))

◆ Current availability rule: deferrals cannot be made from compensation that has already become currently available, (Ch11/SecVI/PtC.1.e.5))

◆ Post-severance compensation: compensation paid after termination, (Ch11/SecVI/PtB.5.)

- IRS memorandum on definitely determinable benefits under cash balance plans: issues created by specialized compensation definitions, (Ch3A/SecIII/PtA.6.b.)

- Section 414(s) definition, see Section 414(s) compensation below

- Section 415 definition, see Section 415 compensation below

- SEPs: compensation definition used to compute contributions, see SEPs

- SIMPLE-IRA plans: compensation definition used to compute contributions, see SIMPLE PLANS

* Dollar limit on compensation, see COMPENSATION DOLLAR LIMIT

* Earned income, see SELF-EMPLOYED INDIVIDUALS

* Elective deferrals: compensation from which deferrals can be made, (Ch3A/SecII/PtD.2.a.4))

- Post-severance compensation: only certain types may be eligible for deferral, (Ch11/SecVI/PtB.5.b.)

* Employee becomes partner during year: compensation includes earned income as partner, (Ch1A/Def-EarnedIncome/PtA.8.), (Ch1A/Def-EarnedIncome/PtA.8.)

* Excess compensation, (Ch1B/Def-PermittedDisparity)

* Excluding categories of compensation, see ACCRUAL OF BENEFITS

* Final average compensation, (Ch1B/Def-PermittedDisparity)

* Housing allowance for ministers, (Ch1A/Def-Compensation/PtA.3.c.)

* Independent contractors

- Payments not treated as employee compensation, (Ch1A/Def-Compensation/PtA.1.a.1))

- Treated as their own employer and compensation treated as self-employment income, (Ch1A/Def-Compensation/PtA.1.a.1))

* Indian tribal governments

- Fishing rights income, (Ch1A/Compensation/PtA.1.a.4)

* IRAs: compensation for IRA contribution purposes, (Ch12/SecIX/PtA.2.c.)

- Treatment of alimony (TCJA change), (Ch12/SecIX/PtA.2.c.6))

* Medical Loss Ratio rebates, (Ch1A/Def-Compensation/PtA.2.g.)

* Nondiscrimination testing safe harbors might affect definition of compensation used by plan, (Ch1A/Def-Compensation/PtC.1.)

* Partial year compensation used for new participant to determine accrual of benefits, see ACCRUAL OF BENEFITS

* Plan year compensation, (Ch3A/SecIII/PtA.1.c.)

* Post-severance compensation

- Benefit accrual/employer contribution allocations: inclusion of post-severance compensation in determination, (Ch1A/Def-Compensation/PtC.2.)

- Deferrals under 401(k) arrangement from post-severance compensation, (Ch11/SecVI/PtB.5.b.)

- Differential wage payments treated as active employee compensation (HEART Act rule), (Ch1A/Def-Compensation/PtA.4.c.1))

- Nondiscrimination testing issues under IRC §414(s), (Ch1A/Def-Compensation/PtB.3.)

- Post-severance compensation generally excluded from section 415 compensation, (Ch1A/Def-Compensation/PtA.4.a.)

- Types of post-severance compensation includible in section 415 compensation

◆ Disability: certain salary continuation payments eligible to be included, (Ch1A/Def-Compensation/PtA.4.c.2))

◆ Inclusion of certain amounts paid within 2½ months after severance (or end of year in which severance occurs, if later), (Ch1A/Def-Compensation/PtA.4.b.)

◆ Military service: inclusion of certain salary continuation payments eligible to be included, (Ch1A/Def-Compensation/PtA.1.c.1))

. . . Effect of HEART Act, (Ch1A/Def-Compensation/PtA.4.c.1)a))

◆ Nonqualified deferred compensation payments: certain payments eligible to be included, (Ch1A/Def-Compensation/PtA.4.b.2)c))

◆ Unused leave cashouts: certain payments eligible to be included in compensation, (Ch1A/Def-Compensation/PtA.4.b.2)b))

* Section 414(s) compensation

- Compensation ratio test, (Ch1A/Def-Compensation/PtB.3.b.)

◆ Employee who is eligible participant for only part of year, (Ch1A/Def-Compensation/PtB.3.b.5))

- Differential wage payments may be excluded without failing §414(s), (Ch9/SecXI/PtL.1.b.)

- Elective deferrals: treatment in determining 414(s) compensation, (Ch1A/Def-Compensation/PtB.2.b.)

- Fringe benefits: excluding to determine 414(s) compensation, (Ch1A/Def-Compensation/PtB.2.a.)

- Imputed compensation, (Ch1A/Def-Compensation/PtB.6.)

- Modifications to 415 compensation definition to determine 414(s) compensation, (Ch1A/Def-Compensation/PtB.2.) (safe harbor modifications), (Ch1A/Def-Compensation/PtB.3.) (other modifications)

- Post-severance compensation, see Post-severance compensation above

- Prior-employer compensation, (Ch1A/Def-Compensation/PtB.6.)

- Rate-of-pay definition, (Ch1A/Def-Compensation/PtB.5.)

- Related employers, (Ch1A/Def-Compensation/PtB.7.)

- Safe harbor modifications to 415 compensation for purposes of determining 414(s) compensation, (Ch1A/Def-Compensation/PtB.2.)

- Self-employed individuals, 414(s) compensation: definition for,

◆ Definition of earned income, see SELF-EMPLOYED INDIVIDUALS

◆ Earned income must be adjusted if compensation definition for employees is modified, (Ch1A/Def-Compensation/PtB.4.)

* Section 415 compensation, (Ch1A/Def-Compensation/PtA)

- Accrued compensation can't be used, (Ch1A/Def-Compensation/PtA.7.c.)

◆ "First few weeks" rule, (Ch1A/Def-Compensation/PtA.7.c.1))

- Cafeteria plan: effect on compensation, (Ch5/SecII/PtA.4.c.3))

◆ Automatic enrollment, (Ch1A/Def-Compensation/PtA.6.b.)

◆ Deemed §125 compensation for employees who are ineligible to opt out of health plan covered, (Ch1A/Def-Compensation/PtA.6.e.)

- Current includible compensation definition, (Ch1A/Def-Compensation/PtA.1.)

- Deferral amounts: inclusion in section 415 compensation, (Ch1A/Def-Compensation/PtA.6.)

- Differences among the regulatory definitions, (Ch1A/Def-Compensation/PtA.5.)

- Distributions from unfunded deferred compensation plans may be included in compensation, (Ch1A/Def-Compensation/PtA.1.b.5))

- Elective deferrals added back under all 3 regulatory definitions, (Ch1A/Def-Compensation/PtA.6.)

◆ Cafeteria plan contributions: automatic enrollment, (Ch1A/Def-Compensation/PtA.6.e.)

◆ Deemed §125 compensation, (Ch1A/Def-Compensation/PtA.6.e.)

◆ Distribution of deferrals to correct IRC §415 violation does not increase section 415 compensation, (Ch5/SecII/PtD.1.a.6)b))

◆ Qualified transportation benefits purchased through salary reduction, (Ch1A/Def-Compensation/PtA.6.d.)

. . . Bicycle commuting expenses (TCJA change), (Ch1A/Def-Comp/PtA.6.d.1)a))

- Entire's year compensation taken into account even if not a participant for entire year, (Ch5/SecII/PtA.5.)

- Group term life insurance treated differently under the 3 regulatory definitions, (Ch1A/Def-Compensation/PtA.5.a.3))

- Measurement year for determining compensation, (Ch1A/Def-Compensation/PtA.7.e.)

- Medical benefits treated differently under the 3 regulatory definitions, (Ch1A/Def-Compensation/PtA.5.a.2))

- Medical Loss Ratio rebates, (Ch1A/Def-Compensation/PtA.2.g.)

- Moving expenses that are reimbursed, (Ch1A/Def-Comp/PtA.1.b.2))

◆ Deduction suspended by TCJA for 2018-2025 tax years, (Ch1A/Def-Comp/PtA.1.b.2)a)), (Ch1A/Def-Comp/PtA.2.d.1)a)), (Ch1A/Def-Comp/PtA.3.b.6)a))

- Nonqualified plan distributions treated differently under the 3 regulatory definitions, (Ch1A/Def-Compensation/PtA.5.a.5))

- Plan's definition of compensation for accrual purposes does not affect section 415 compensation, (Ch1A/Def-Compensation/PtA.7.f.)

- Post-severance compensation, see Post-severance compensation above

- Qualified equity grants (IRC §83(i)) (added by TCJA), (ChA1/Def-Comp/PtA.1.b.4)a))

- Related employers aggregate compensation to determine 415 compensation, (Ch1A/Def-Compensation/PtA.7.d.)

- Simplified compensation rule under "current includible income" definition, (Ch1A/Def-Compensation/PtA.1.d.)

- Self-employed individuals: 415 compensation definition for,

◆ Definition of earned income, see SELF-EMPLOYED INDIVIDUALS

◆ Earned income serves a section 415 compensation, (Ch1A/Def-Compensation/PtA.1.a.)

- Stock option income treated differently under the 3 regulatory definitions, (Ch1A/Def-Compensation/PtA.5.a.4))

- Tip income treated differently under the 3 regulatory definitions, (Ch1A/Def-Compensation/PtA.5.a.1))

- Virtual currency, (Ch1A/Def-Compensation/PtA.1.f.)

- W-2 wages definition (IRC §6051 definition), (Ch1A/Def-Compensation/PtA.2.)

- Wages for income tax withholding definition (IRC §3401 definition), (Ch1A/Def-Compensation/PtA.3.)

* Related employers, see Section 414(s) compensation and Section 415 compensation above

* Self-employed individuals, compensation definition for, see SELF-EMPLOYED INDIVIDUALS

* SEPs: definition of compensation for computing contributions, see SEPs

* SIMPLE-IRA plans: definition of compensation for computing contributions, see SIMPLE PLANS

* Table comparing different definitions and uses of compensation, (Ch15/SecIV/PtG)

* Top heavy rules: definition of compensation to apply, see TOP HEAVY RULES

* W-2 compensation

- Section 415 compensation definition, see Section 415 compensation above

COMPENSATION DOLLAR LIMIT

* Average compensation: application of dollar limit to calculation, (Ch3B/SecII/PtC.1.)

- May assume $200,000 limit was in effect in earlier years when determining accrued benefits in post-2001 plan years, (Ch3B/SecII/PtC.1.b.)

* Compensation limit applied after compensation is reduced by elective deferrals, (Ch3B/SecII/PtE)

* Deduction limits: effect of compensation dollar limit on calculation, (Ch7/SecXVI/PtF.1.)

* Defined benefit plans: application of compensation dollar limit, (Ch3B/SecII/PtC)

* Defined contribution plans: application of compensation dollar limit, (Ch3B/SecII/PtB)

* Elective deferrals: effect of compensation limit on deferral rate, (Ch3B/SecII/PtD.3.)

- Application of plan limit on deferral election that is expressed as percentage of compensation, (Ch3B/SecII/PtB.3.b.)

* EPCRS correction method for failure to apply compensation dollar limit, (Ch15/SecVI/PtC.11.)

* Governmental plans: exception from dollar limit for certain participants, (Ch3B/SecII/PtF)

* Indexed compensation dollar limits: table, (Ch17/SecII/PtA)

* Matching contributions: effect of compensation limit, (Ch3B/SecII/PtB.3.)

* Protected accrued benefits under defined benefit plan might be based on compensation in excess of dollar limit, (Ch3B/SecII/PtC.3.)

* Self-employed individuals: effect of compensation dollar limit on earned income, (Ch3B/SecIII/PtG)

* Short compensation periods: proration of compensation dollar limit, (Ch3B/SecII/PtD)

- Elective deferrals: special rule for deferrals calculated for payroll or other limited period, (Ch3B/SecII/PtD.3.)

- Employee contributions: special rule for contributions calculated for payroll or other limited period, (Ch3B/SecII/PtD.3.)

- Initial short plan year, (Ch3B/SecII/PtD.4.)

◆ Employer not in existence before the plan's effective date, (Ch3B/SecII/PtD.4.c.)

- Limiting compensation to period of plan participation does not affect dollar limit, (Ch3B/SecII/PtD.2.)

- Matching contributions: special rule for contributions calculated for payroll or other limited period, (Ch3B/SecII/PtD.3.)

- Plan year in which plan terminates, (Ch3B/SecII/PtD.5.)

- Short plan year, (Ch3B/SecII/PtD) 

* SIMPLE-IRA plans: application of dollar limit, see SIMPLE PLANS

* SIMPLE-401(k) plans: application of dollar limit, see SIMPLE-401(k) PLANS

* Termination of plan

- Application of compensation dollar limit in plan year in which plan terminates, (Ch3B/SecII/PtD.5.)

COMPENSATION RATIO TEST, see COMPENSATION (Section 414(s) compensation)

CONSENT REQUIREMENTS FOR CERTAIN DISTRIBUTIONS, see DISTRIBUTIONS

CONSTRUCTIVE RECEIPT

* Deferral of refunds under state disability program, (Ch1A/Def-CashOrDeferredArrangement/PtE.2.)

* Discontinuance of defined benefit plan participant in exchange for enhanced defined contribution allocation, (Ch1A/Def-CashOrDeferredArrangement/PtE.3.)

* Unused vacation: contribution to plan is not elective deferral because there is no cash election, (Ch1A/Def-CashOrDeferredArrangement/PtE.1.) Also see PTO PLANS

* Use of unused sick leave to increase pension benefits did not result in taxable income because employee did not have cash election, (Ch1A/Def-CashOrDeferredArrangement/PtE.1.b.) Also see PTO PLANS

CONSUMER FINANCIAL PROTECTION BUREAU

* Regulation Z: effect on certain retirement plan contributions made on behalf of loan originators, (Ch3A/SecII/PtB.5.f.)

CONTINGENT BENEFIT RULE, see SECTION 401(k) PLANS

CONTRIBUTORY DEFINED BENEFIT PLANS, see (Ch3A/SecIII/PtA.1.c.)

CONTROLLED GROUP OF BUSINESSES, see ATTRIBUTION RULES, RELATED ORGANIZATIONS

CONVERSION OF PLAN INTO ANOTHER TYPE OF PLAN, see AMENDMENT OF PLAN

CORRECTIVE DISTRIBUTIONS, see ADP AND ACP TESTING, ELECTIVE DEFERRALS (Section 402(g) limit), SECTION 415 LIMITS

COVERAGE TESTING

* 500-hour rule, see Excludable employees below

* Acquisition or disposition of related group members or business assets: special testing rule, (Ch8/SecVIII/PtE)

- Application of rule expanded by regulations, (Ch8/SecVIII/PtE.2.)

- Creation of new subsidiary in intra-company transaction not eligible for transition rule, (Ch8/SecVIII/PtE.5.)

- Determination letter no longer available to resolve proper application of transition rule, (Ch8/SecVIII/PtE.6.)

- Leasing of facility treated as similar transaction covered by transition rule, (Ch8/SecVIII/PtE.2.a.)

- Reliance on transition rule is optional, (Ch8/SecVIII/PtE.8.)

- Requirement that coverage is satisfied as of date of acquisition/disposition, (Ch8/SecVIII/PtE.7.)

- Significant change in coverage not permitted, (Ch8/SecVIII/PtE.3.)

- Spinoff of part of plan to another plan, pursuant to business acquisition, should not jeopardize reliance on transition rule, (Ch8/SecVIII/PtE.3.a.)

- Transition period ends prospectively if there is a significant change in coverage, (Ch8/SecVIII/PtE.3.b.)

* Aggregation of plans

- Average benefits test, plan included in, see Average benefits test below

- Minimum participation test: aggregation of plans not permitted, (Ch8/SecX/PtE)

- Permissive aggregation for ratio test or nondiscriminatory classification test, (Ch8/SecVII)

◆ Benefiting group for the aggregated plans, (Ch8/SecVII/PtA.2.)

◆ Coverage testing group for the aggregated plans, (Ch8/SecVII/PtA.1.)

◆ Different age and service requirements for aggregated plans affects determination of excludable employees, (Ch8/SecVII/PtE)

◆ ESOPs: special conditions must be satisfied in order to aggregate, (Ch8/SecVII/PtB.5.)

◆ Not available for plans subject to mandatory disaggregation, (Ch8/SecVII/PtC)

◆ Otherwise excludable employee disaggregation under permissively aggregated plans, (Ch8/SecVII/PtE.1.)

◆ Same plan year required, (Ch8/SecVII/PtD)

- Section 403(b) may not be aggregated with qualified plan to help qualified plan pass coverage, (Ch8/SecVI/PtD.2.)

* Amendment to cure coverage violation, see Failing coverage requirements below

* Average benefits test, (Ch8/SecV)

- Average benefit percentage test, (Ch8/SecV/PtC)

◆ Aggregation of plans, (Ch8/SecV/PtC.3.)

. . . DB and DC plans included in ratio: special rule, (Ch8/SecV/PtC.3.e.)

. . . Different age and service requirements for plans included in average benefits ratio, (Ch8/SecV/PtC.4.b.)

. . . Different plan years for plans aggregated under the average benefits test, (Ch8/SecV/PtC.3.f.)

. . . ESOPs included with non-ESOPs in calculating ratio, (Ch8/SecV/PtC.3.b.)

. . . Section 401(k) and 401(m) arrangements included in ratio with other plans (or other portions of plan), (Ch8/SecV/PtC.3.a.)

◆ Allocation rates for ABP purposes, (Ch8/SecV/PtC.2.a.)

◆ Averaging period of two or three years permitted, (Ch8/SecV/PtC.2.h.)

◆ Benefit percentage computations, (Ch8/SecV/PtC.2.)

◆ Benefit rates for ABP purposes, (Ch8/SecV/PtC.2.b.)

◆ Corrective distributions included in benefit percentages, (Ch8/SecV/PtC.2.i.)

. . . Exclude excess contributions recharacterized as catch-up contributions, (Ch8/SecV/PtC.2.i.1))

◆ Cross testing available to determine benefit percentages, (Ch8/SecV/PtC.2.c.)

◆ Distributed amounts included in benefit percentages, (Ch8/SecV/PtC.2.i.)

◆ Examples of average benefits test, (Ch8/SecV/PtC.5.)

◆ Excess annual additions disregarded, (Ch8/SecV/PtC.2.i.3))

◆ Imputing permitted disparity to compute percentages, (Ch8/SecV/PtC.2.d.)

◆ Section 414(s) compensation used to compute benefit percentages, 8.57

- "Fail-safe" language might preclude use of average benefits test, (Ch8/SecV/PtC.5.)

- Nondiscriminatory classification test, (Ch8/SecV/PtB)

◆ Facts and circumstances test, (Ch8/SecV/PtB.2.b.)

◆ Reasonable classification test, (Ch8/SecV/PtB.1.)

◆ Safe harbor percentage test, (Ch8/SecV/PtB.2.a.)

◆ Table of safe harbor and unsafe harbor percentages, (Ch8/App)

* Benefiting group (who is treated as benefiting for coverage purposes), (Ch8/SecIII/PtD)

- Defined benefit plan, (Ch8/SecIII/PtD.2.)

◆ Accrual requirements affect benefiting, (Ch8/SecIII/PtD.2.a.)

◆ Fully-insured plan exception, (Ch8/SecIII/PtD.2.g.)

◆ Offset arrangement exception, (Ch8/SecIII/PtD.2.e.)

◆ Plan limit exception, (Ch8/SecIII/PtD.2.c.)

◆ Post-NRA accruals eliminated by actuarial increase, (Ch8/SecIII/PtD.2.f.)

◆ Prior accruals which result in a failure to accrue additional benefits, (Ch8/SecIII/PtD.2.d.)

◆ Section 415 limits which result in failure to accrue benefits, (Ch8/SecIII/PtD.2.b.)

◆ Surplus assets allocated under terminated DB plan, (Ch8/SecIII/PtD.2.i.1))

◆ Top heavy minimum accrual, (Ch8/SecIII/PtD.2.h.)

◆ Year in which plan terminates, (Ch8/SecIII/PtD.2.i.)

- Defined contribution plan, (Ch8/SecIII/PtD.1.)

◆ Separate classifications for matching contributions - effect of providing zero match for one of the groups, (Ch8/SecVI/PtB.4.b.4))

◆ Hours of service requirement for allocations affects benefiting, (Ch8/SecIII/PtD.1.a.)

◆ Last day employment rule for allocations affects benefiting, (Ch8/SecIII/PtD.1.a.1))

◆ Must receive allocation of employer contributions or forfeitures, (Ch8/SecIII/PtD.1.a.)

◆ Section 415 limits that result in failure to receive allocation, (Ch8/SecIII/PtD.1.c.)

◆ Target benefit plan exception, (Ch8/SecIII/PtD.1.e.)

◆ Top heavy minimum allocation, (Ch8/SecIII/PtD.1.f.)

◆ Year in which plan terminates, (Ch8/SecIII/PtD.2.i.)

- Different levels of contributions or benefits disregarded in determining whose benefiting, (Ch8/SecIII/PtD.6.)

- Election out of plan, (Ch8/SecIII/PtD.4.)

◆ Irrevocable waiver, (Ch8/SecIII/PtD.4.a.)

- Minimum participation test, employees who are benefiting for purposes of, see Minimum participation test below

- No compensation for the plan year results in failure to receive allocations, (Ch8/SecIII/PtD.7.)

- Rollover contributions made before employee otherwise satisfies eligibility requirements, (Ch8/SecIII/PtD.5.)

- Section 401(k) arrangement: special benefiting rules, (Ch8/SecVI/PtB.3.b.)

- Section 401(m) arrangement: special benefiting rules, (Ch8/SecVI/PtB.4.b.)

* Coverage testing group (which employees are taken into account to do coverage testing), (Ch8/SecIII/PtA)

- Testing period, (Ch8/SecIII/PtC.2.)

- Annual testing, (Ch8/SecIII/PtC.2.a.)

- Daily testing, (Ch8/SecIII/PtC.2.c.)

- Quarterly testing, (Ch8/SecIII/PtC.2.b.)

- Section 401(k) and 401(m) arrangements required to use annual testing, (Ch8/SecIII/PtC.2.a.1))

- Short plan year, (Ch3B/SecII/PtD)

- Snapshot testing date, (Ch8/SecIII/PtC.2.a.2))

* Davis-Bacon plan: effect of exclusion of defined contribution plans from §401(a)(26) requirements, (Ch8/SecX/PtF.1.a.1))

* Deemed satisfaction with coverage requirements

- Governmental plans, (Ch11/SecXII/PtO)

- No HCEs benefiting under plan, (Ch8/SecVIII/PtI)

- No NHCs in coverage testing group, (Ch8/SecVIII/PtH)

* Determination letters on coverage testing compliance no longer available, (Ch8/SecVIII/PtE.6.)

* Disaggregation

- Average benefits test: certain disaggregation rules not applicable, (Ch8/SecV/PtC.3.), (Ch8/SecV/PtC.3.)

- Collectively bargained plans, (Ch8/SecVIII/PtF)

- ESOPs, (Ch3A/SecII/PtE.1.a.)

- Minimum participation test, disaggregation rules for applying, see Minimum participation test below

- Multiple employer plans, (Ch8/SecVIII/PtA.6.)

- Otherwise excludable employees: separate testing option, (Ch8/SecVIII/PtB)

◆ Effect on average benefits test, (Ch8/SecVIII/PtB.7.)

◆ Effect on nondiscrimination testing, (Ch8/SecVIII/PtB.7.)

◆ How do the plan's entry dates affect the determination of who is an otherwise excludable employee? (Ch8/SecVIII/PtB.2.a.)

◆ Terminated employees, (Ch8/SecVIII/PtB.2.f.)

◆ Two-year eligibility rule may not be used as basis to disaggregate, (Ch8/SecVIII/PtB.3.)

- Plans benefiting more than one disaggregation population, (Ch8/SecVIII/PtA.7.)

- Plans subject to disaggregation, (Ch8/SecVIII/PtA)

- QSLOBs, (Ch8/SecVIII/PtG)

- Section 401(k) and 401(m) plans: separate coverage testing rules, see Section 401(k) and 401(m) plans below

* Disaggregation populations: definition, (Ch8/SecVIII/PtA.7.)

* Discretionary profit sharing plans

- Deemed to meet coverage if no contributions or forfeitures for plan year, (Ch8/SecVIII/PtI.3.)

* Disqualification of plan for coverage violation, (Ch8/SecIX)

* Distributions: inclusion of in average benefit percentage, see Average benefits test above

* Dual eligibility requirements: effect on coverage testing, (Ch8/SecVIII/PtC)

* Election out: effect on determination of who is benefiting, (Ch8/SecIII/PtD.4.)

- Irrevocable waiver, (Ch8/SecIII/PtD.4.a.)

* Eligibility requirements: relationship to coverage testing, (Ch8/SecII)

* Employment classification for eligibility may affect coverage, (Ch8/SecIII/PtD.3.)

* ESOPs, see Average benefits test and Disaggregation above, and Minimum participation test below

* Excludable employees, (Ch8/SecIII/PtB)

- 500-hour rule for terminated participants, (Ch8/SecIII/PtB.2.)

- Age and service exclusions, (Ch8/SecIII/PtB.1.)

◆ Entry date following completion of requirements: employee is excludable until then, (Ch8/SecIII/PtB.1.b.)

◆ Effect of break in service rules, (Ch8/SecIII/PtB.1.f.)

◆ Rollover by employee prior to satisfying plan's eligibility requirements, (Ch8/SecIII/PtB.1.d.)

- Break in service rules: effect on determination of excludable employees, (Ch8/SecIII/PtB.1.f.)

- Cruise line employees treated as excludable nonresident alien employees under certain circumstances, (Ch8/SecIII/PtB.4.e.)

- Definition of excludable employees, (Ch1A/Def-GovernmentPlan/PtB), (Ch8/SecIII/PtB)

- Determine separately for each plan maintained by employer unless plans are permissively aggregated, (Ch8/SecIII/PtB.1.i.)

- Former employees, see Former employees benefiting under plan below

- Minimum participation test, excludable employees for purposes of, see Minimum participation test below

- Must be excludable employee for entire testing period to be disregarded from coverage testing group, (Ch8/SecIII/PtB)

- Nonresident alien employees, (Ch8/SecIII/PtB.4.)

◆ Puerto Rico, (Ch8/SecIII/PtB.4.c.)

◆ Treaty rule, (Ch8/SecIII/PtB.4.a.)

- Resident aliens not provided any special rules, (Ch8/SecIII/PtB.4.a.1))

- Permissive aggregation: how it affects excludable employee determination, (Ch8/SecIII/PtB.6.)

- Rollover by employee prior to satisfying plan's eligibility requirements: employee is still excludable, (Ch8/SecIII/PtB.1.d.)

- Union employees, (Ch11/SecXII/PtI.3.)

◆ Airline pilots: special rule, (Ch8/SecIII/PtB.3.c.)

◆ Collective bargaining unit: definition, (Ch8/SecIII/PtB.3.a.)

◆ Dual status is possible, (Ch8/SecIII/PtB.3.e.)

◆ Nonunion employees participating in multiemployer plans treated as union employees under certain circumstances, (Ch8/SecVIII/PtF.2.)

- Safe harbor accrual requirements, (Ch8/SecIII/PtB.2.d.)

- Terminated participants with 500 or fewer hours of service, (Ch8/SecIII/PtB.2.)

◆ Elapsed time plans using this rule, (Ch8/SecIII/PtB.2.e.)

◆ Employees excluded by job classification are not excludable under this rule even if they terminate with 500 or fewer hours, (Ch8/SecIII/PtB.2.a.1))

◆ Short plan year, (Ch3A/SecII/PtH.1.f.)

* Failing coverage requirements, (Ch8/SecIX)

- 9½ correction period granted by regulations, (Ch8/SecIX/PtC.1.)

- Amendment to cure coverage violation, (Ch8/SecIX/PtC)

◆ Amendment to add nonvested terminated participant is disregarded, (Ch8/SecIX/PtC.1.d.)

- "Fail-safe" language in plan, (Ch8/SecV/PtC.5.)

- HCEs must include entire vested interest in income, (Ch8/SecIX/PtA)

- Only VCP program under EPCRS available to correct failure, (Ch8/SecIX/PtC.2.)

- Retroactive correction of coverage violation, (Ch8/SecIX/PtC.1.)

- Retroactively increasing coverage in section 401(k) and 401(m) plans, (Ch8/SecIX/PtC.1.b.)

* "Fail-safe" language might preclude use of average benefits test, (Ch8/SecV/PtC.5.)

* Flowchart for coverage and nondiscrimination testing, (Ch15/SecV/PtA)

* Former employees who benefit under plan for the plan year must be separately tested for coverage, (Ch8/SecVIII/PtL)

* Frozen plans

- Deemed to satisfy coverage tests, (Ch8/SecVIII/PtI.2.)

- Deemed to satisfy minimum participation test under certain circumstances, (Ch8/SecX/PtH.1.)

* Governmental plans

- Exempt from coverage and minimum participation tests, (Ch11/SecXII/PtO), (Ch8/SecVIII/PtM.1.)

- Indian tribal governments: certain plans treated as governmental plans, (Ch8/SecVIII/PtM.1.b.)

* Highly compensated employees, determination of who are, see HIGHLY COMPENSATED EMPLOYEES

* Imputing permitted disparity under average benefits test, (Ch1B/Def-PermittedDisparity)

* Independent contractor reclassified by IRS as employees: effect on coverage, (Ch1A/Def-IndependentContractor/PtB.5.)

* Indian tribal governments: treatment of certain ITG plans as governmental plans, (Ch8/SecVIII/PtM.1.b.)

* Last day employment rule, effect of, see Benefiting group above

* Leased employees, (Ch8/SecVIII/PtO)

- Application of "terminated participants" excludable employee category to leased employees, (Ch8/SecVIII/PtO.1.b.)

- Average benefit percentage includes plans of leasing organization which cover leased employees, (Ch8/SecVIII/PtO.2.a.4))

- Determination of coverage testing group when employer has leased employees, (Ch8/SecVIII/PtO.1.)

- How to take into account contributions or benefits provided under leasing organization's plan for coverage testing purposes, (Ch8/SecVIII/PtO.2.)

* Military service periods

- Makeup contributions will not cause plan to fail coverage, (Ch8/SecVIII/PtN)

* Minimum participation test (IRC §401(a)(26))

- 40% test requires at least 2 employees to benefit, (Ch8/SecX/PtA.2.)

- Acquisition or disposition of related group members, see Acquisition or disposition above

- Aggregation of plans not permitted, (Ch8/SecX/PtE)

- Benefiting under the plan: how to determine who benefits under the plan for purposes of the minimum participation test, (Ch8/SecX/PtC)

- Davis-Bacon plans: effect of defined contribution exemption from §401(a)(26) testing, (Ch8/SecX/PtF.1.a.1))

- Defined contribution plans exempt from §401(a)(26) test, (Ch8/SecX/PtA.1.)

- Disaggregation rules under §401(a)(26), (Ch8/SecX/PtD)

- Excise tax on reversions: exemption for certain terminations necessitated by IRC §401(a)(26), (Ch7/SecXVIII/PtB.2.c.), (Ch7/SecXVIII/PtB.2.c.)

- Excludable employees for purposes of the 40% test, (Ch8/SecX/PtB)

- Flexibility for defined contribution plan designs, (Ch8/SecX/PtF.1.a.)

- Former employees who currently benefit under plan: separate testing required, (Ch8/SecX/PtH.6.)

- Frozen plan exception, (Ch8/SecX/PtH.1.)

- Governmental plans exempt from minimum participation test, (Ch8/SecVIII/PtM.1.)

- Leased employees: special rules, (Ch8/SecX/PtC.2.)

- QSLOB testing permitted for minimum participation test, even if separate line of business does not meet 50-employee requirement, (Ch1B/Def-QSLOB/PtB.1.a.)

- Offset formulas in defined benefit plans: special rules, (Ch8/SecX/PtC.1.)

◆ Offsets are not "reasonable and uniform" if applied differently to different allocation groups, (Ch8/SecX/PtC.1.a.)

- Outside arrangement with defined benefit plan, (Ch8/SecX/PtD.7.)

- Plan benefiting only NHCs deemed to pass only if certain conditions satisfied, (Ch8/SecX/PtH.2.)

- Prior benefit structure test for defined benefit plans, (Ch8/SecX/PtG)

◆ IRS guidance on meaningful benefits (0.5% accrual rate benchmark), (Ch8/SecX/PtG.3.a.)

◆ Meaningful benefits, (Ch8/SecX/PtG.3.)

◆ Potential conflict with benefit restrictions under IRC §436, (Ch8/SecX/PtH.3.a.)

- Retroactive correction of violation, (Ch8/SecX/PtI)

- Underfunded defined benefit plan exception, (Ch8/SecX/PtH.3.)

* Multiemployer plans that cover nonunion employees: special coverage testing rules, (Ch8/SecVIII/PtF.2.)

* Multiple employer plans: special coverage testing rules, (Ch1A/Def-MultipleEmployerPlan/PtA.5.), (Ch8/SecVIII/PtA.6.)

* Naming an employee as excluded is not a reasonable classification for purposes of the average benefits test, (Ch8/SecV/PtB.1.)

* No highly compensated employees (HCEs) benefiting from plan

- Coverage deemed satisfied, (Ch8/SecVIII/PtI)

- Minimum participation test satisfied if plan not top heavy nor aggregated for coverage testing, (Ch8/SecX/PtH.2.)

* No nonhighly compensated employees (NHCs) included in coverage testing group: coverage deemed satisfied, (Ch8/SecVIII/PtH)

* Nondiscrimination testing: coverage testing principles used, (Ch3A/SecIII/PtA.1.c.)

* Nondiscriminatory classification test, see Average benefits test above

* Nonexcludable employee: definition of, (Ch1B/Def-NonexcludableEmployee)

* Nonresident aliens, see Excludable employees above

* Otherwise excludable employees, separate testing of, see Disaggregation and Minimum participation test above

* Permissive aggregation, see Aggregation of plans above

* Prior benefit structure test, see Minimum participation test above

* QSLOBs

- Exception to 50-employee rule for §401(a)(26) testing on QSLOB basis, (Ch8/SecX/PtD.4.a.)

- Separate coverage testing for plans maintained by a QSLOB, (Ch8/SecVIII/PtG)

◆ Special rule for reasonable classification test, (Ch8/SecVIII/PtG.1.)

◆ Testing certain plans on employer-wide basis, (Ch8/SecVIII/PtG.3.)

- Separate minimum participation testing for plans maintained by QSLOBs, (Ch8/SecX/PtD.4.)

* Ratio test

- Computing the coverage ratio, (Ch8/SecIV/PtB)

- Examples, (Ch8/SecIV/PtC)

- Worksheet examples, (Ch8/SecIV/PtE)

* Related employers: application of the coverage tests, (Ch8/SecVIII/PtD)

- Transition period for certain acquisition or dispositions of related group members or business assets, see Acquisition or disposition of related group members or business assets above

* Retroactive correction rules, (Ch8/SecIX/PtC), (Ch8/SecX/PtI)

* Safe harbor accrual requirements can avoid coverage problems, (Ch8/SecIII/PtB.2.d.)

* Safe harbor percentages used in nondiscriminatory classification test: table, (Ch8/App)

* Section 401(k) and 401(m) plans: special coverage testing rules, (Ch8/SecVI)

- Benefiting group under section 401(k) plan

◆ Eligible employee treated as benefiting under 401(k) plan, (Ch8/SecVI/PtB.3.b.)

- Benefiting group under section 401(m) plan

◆ Allocation requirements for matching contribution allocation affect who are eligible employees under 401(m) plan, (Ch8/SecVI/PtB.4.b.2))

◆ Eligible employee treated as benefiting under 401(m) plan, (Ch8/SecVI/PtB.4.b.)

◆ Zero match for one of the eligible classifications of employees, (Ch8/SecVI/PtB.4.b.4))

- Elective deferrals are always part of 401(k) plan for coverage testing purposes, (Ch8/SecVI/PtA.2.)

- Example of coverage test for 401(k) plan, (Ch8/SecVI/PtC)

- Governmental employees excluded from plan, (Ch8/SecVI/PtD.1.a.)

- QMACs are always part of 401(m) plan for coverage testing purposes, (Ch8/SecVI/PtA.1.)

- QNECs are not part of 401(k) plan or 401(m) plan for coverage testing purposes, (Ch8/SecVI/PtA.3.)

- Separate testing of each arrangement required (disaggregation), (Ch8/SecVI/PtA)

- Special rule for 401(k) plans that exclude employees of tax-exempt organization related to employer, (Ch8/SecVI/PtD.1.b.)

* Section 403(b) plans

- Disregarded in determining whether qualified plan satisfies coverage, (Ch8/SecVI/PtD.2.)

- Safe harbor tests for passing coverage and nondiscrimination (pre-2008 years), (Ch16/SecII/PtG.2.c.2))

* Short plan year

- Excludable employee determination: effect of a short plan year, (Ch3A/SecII/PtH.1.f.), (Ch3B/SecII/PtD)

* Simplified methods for substantiating coverage, (Ch8/SecVIII/PtK)

- Adjustment of percentage targets for IRC §410(b) testing, (Ch8/SecVIII/PtK.1.d.)

- Quality of data, (Ch8/SecVIII/PtK.3.)

- Snapshot testing date, (Ch8/SecIII/PtC.2.a.2))

- Substantiation quality data, (Ch8/SecVIII/PtK)

- Three-year testing cycle, (Ch8/SecVIII/PtK.2.)

* Snapshot testing date, see Coverage testing group and Simplified methods for substantiating coverage above

* Substantiation quality data, see Simplified methods for substantiating coverage above

* Tax-exempt organization that is part of related group: special testing rules for section 401(k) plan, (Ch8/SecVI/PtD)

* Terminated participants with 500 or fewer hours of service, see Excludable employees above

* Testing period, see Coverage testing group above

* Three-year testing cycle, see Simplified methods for substantiating coverage above

* Top heavy minimum benefit

- Effect on determining who is benefiting for coverage testing purposes, (Ch8/SecIII/PtD.1.f.), (Ch8/SecIII/PtD.2.h.), (Ch8/SecIII/PtD.1.f.)

* Transfer of employees, see Acquisition or disposition above

* Transitional coverage rule triggered by business acquisitions or dispositions, see Acquisition or disposition of related group members or business assets above

COVERAGE UNDER TITLE I OF ERISA, see ERISA

COVERDELL EDUCATION SAVINGS ACCOUNTS, see EDUCATION IRAs

COVERED COMPENSATION, see PERMITTED DISPARITY

CREDITS

* Saver's credit under IRC §25B for lower-income workers, see SAVER'S CREDIT

* Tax credit under IRC §45E for small employers who incur start up costs for plans established after 2001, see TAX CREDITS

CROmnibus (CONSOLIDATED AND FURTHER APPROPRIATIONS ACT, 2015)

* Summary of pension-related provisions in the legislation, (Ch15/SecIX/PtT)

CROSS-TESTED PLANS, (Ch3A/SecIII/PtA.1.c.)

CROSS-TESTING, (Ch3A/SecIII/PtA.1.c.)

CRUT (CHARITABLE REMAINDER UNITRUST), see ESTATE AND GIFT TAXES

 

CUMULATIVE LIST OF CHANGES IN PLAN QUALIFICATION REQUIREMENTS, see APPROVAL PROCESS

CUMULATIVE DISPARITY LIMIT, see PERMITTED DISPARITY

CURRENT AVAILABILITY OF BENEFITS, RIGHTS AND FEATURES, (Ch3A/SecIII/PtA.1.c.)

CURRENT YEAR TESTING METHOD, see ADP AND ACP TESTING

CUSTODIAL ACCOUNTS

* Maintained as part of section 403(b) plan, (Ch16/SecII/PtH.6.b.)

* Section 403(b) plans

- Funding vehicle may be custodial account that invests in mutual funds, (Ch16/SecII/PtC.2.)

* Trust requirement satisfied, (Ch1B/Def-Trust)