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ERISA Outline Book Index

NAMED FIDUCIARY, see FIDUCIARY

NET UNREALIZED APPRECIATION, see EMPLOYER SECURITIES

NEW COMPARABILITY PLANS, (Ch3A/SecIII/PtA.1.c.)

NONCASH CONTRIBUTIONS TO PLAN, see DEDUCTION LIMITS, PROHIBITED TRANSACTIONS

NONDEDUCTIBLE CONTRIBUTIONS, see DEDUCTION LIMITS

NONDISCRIMINATION TESTING (IRC §401(a)(4))

* 9½ month correction rule, see Retroactive correction of discrimination below

* 25-year minimum accrual requirement for certain safe harbor defined benefit plans, (Ch9/SecVI/PtA.3.c.)

* "Abusive" plan designs cited in IRS directive, 

- Clarification of IRS position on short-term employees, (Ch9/SecXI/PtP.1.c.1))

- Use of short-term employees to pass nondiscrimination testing will be challenged by IRS under certain circumstances, (Ch9/SecXI/PtP.1.b.)

◆ Issue revisited with additional examples, (Ch9/SecXI/PtP.2.)

* Accumulation plan, (Ch9/SecVI/PtA.7.)

* Age-weighted plans, (Ch9/SecIV/PtE.3.)

* Aggregation of plans to perform nondiscrimination tests, (Ch9/SecIX/PtB)

- Applying rate group testing method to aggregated plans, (Ch9/SecIX/PtB.2.b.)

- Applying safe harbor tests to aggregated plans, (Ch9/SecIX/PtB.2.a.)

- Average benefit percentage test alone does not cause plan to be treated as aggregated, (Ch9/SecIX/PtB.4.)

- One participant plan included in aggregation group not treated as having a participant-direction-of-investment feature, (Ch9/SecX/PtA.3.b.)

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

- Special rules when DC plan and DB plan are aggregated, (Ch9/SecIX/PtB.5.)

◆ Aggregate allocation rates or aggregate benefit rates used for testing, (Ch9/SecIX/PtB.5.b.)

◆ Gateway test before DB/DC plan can be tested on a benefits basis, see Gateway test below

- Testing benefits, rights and features under aggregated plans, (Ch9/SecX/PtA.3.)

* Amendment of plan must not discriminate significantly in favor of HCEs, (Ch9/SecXI/PtC)

- Establishment or termination of plan treated as amendment, (Ch9/SecXI/PtC.1.)

- Past service credits: safe harbor if limited to 5 years, (Ch9/SecXI/PtC.2.)

* Availability of benefits, rights and features (BRFs) must be nondiscriminatory, (Ch9/SecX)

- Ancillary benefits: definition, (Ch9/SecX/PtA.1.b.)

- Benefits: definition, (Ch9/SecX/PtA.1.)

- Catch-up contributions must satisfy universal availability test, see (Ch11/SecVI/PtC.1.g.) below

- Closed DB plan: BRF availability to grandfathered group of employees, (Ch9/SecX/PtD.3.)

- Current availability of BRFs must be nondiscriminatory, (Ch9/SecX/PtB)

◆ Age and service conditions can be disregarded for certain tests, (Ch9/SecX/PtB.2.b.)

◆ Conditions besides age and service that may be disregarded, (Ch9/SecX/PtB.2.c.)

◆ Minimum distribution options after age 70½: special exception, (Ch9/SecX/PtB.6.)

◆ Minimum loan amount may be disregarded, (Ch9/SecX/PtB.2.e.1))

◆ Reasonable classification test might have to be satisfied, (Ch9/SecX/PtB.2.h.)

◆ Safe harbor percentages, see COVERAGE TESTING

◆ Sample availability test, (Ch9/SecX/PtB.6.)

◆ Target date fund series offering deferred annuity investments only to older participants, (Ch9/SecX/PtB.2.i.)

◆ Uniform availability of a BRF to all plan participants, (Ch9/SecX/PtB.4.)

- Deemed IRA accounts: availability of feature not subject to this testing rule, (Ch12/SecIX/PtG.4.a.1))

- Determination letter: scope regarding nondiscriminatory availability issues, (Ch9/SecX/PtB.7.)

- Effective availability, (Ch9/SecX/PtC)

- Elective deferrals are "rights and features" under the plan, (Ch9/SecX/PtA.2.a.)

◆ Catch-up contributions have separate "universal availability" test, (Ch11/SecXII/PtE.2.d.)

◆ Compensation definition used to determine rate of deferrals: effect on nondiscrimination testing, (Ch11/SecXII/PtE.2.a.1))

- Elimination of benefit, right or feature on prospective basis: special availability test, (Ch9/SecX/PtB.5.)

- Employee contributions are "rights and features" under the plan, (Ch9/SecX/PtA.2.a.)

- Former employees: separate testing of BRFs, (Ch9/SecXI/PtI.2.)

- Frozen participants: special test rules, (Ch9/SecX/PtD.4.)

- Life insurance contracts: benefits, rights, and features with respect to contracts held by the plan, (Ch9/SecX/PtA.6.)

- Matching contributions: right to each rate of match is a separate BRF testing purposes, (Ch11/SecXII/PtE.3.)

◆ Allocation timing differences for matching contributions, (Ch11/SecXII/PtE.3.b.4)

◆ Catch up contributions: how to test availability of match, (Ch11/SecXII/PtE.3.d.)

◆ Compensation definition used to calculate matching contributions, (Ch11/SecXII/PtE.3.c.)

◆ Different match formulas, (Ch11/SecXII/PtE.3.b.)

◆ Matching contributions not available for designated Roth contributions: effect on BRF testing, (Ch11/SecXII/PtE.3.e.)

◆ "Orphan" match, (Ch11/SecXII/PtE.3.a.)

- Mergers and acquisitions: special BRF testing rules, (Ch9/SecX/PtA.3.)

- Optional forms of benefit: definition, (Ch6/SecIII/PtD.1.a.)

- Participant loans: special rule with respect to certain former employees, (Ch9/SecXI/PtI.2.a.)

- Permissively aggregated plans, (Ch9/SecX/PtD.2.)

◆ Spousal benefits: special rule, (Ch9/SecX/PtD.6.)

- Retroactive correction of discriminatory availability, (Ch9/SecX)

- Rights and features: definition, (Ch9/SecX/PtA.2.)

- Rollovers permitted before meeting eligibility requirements: special availability testing rules, (Ch9/SecX/PtA.2.b.)(Ch9/SecX/PtB.2.g.)

- Window benefits, (Ch9/SecX/PtB.2.b.2)), (Ch9/SecX/PtD.5.)

* Average annual compensation for nondiscrimination testing purposes, (Ch9/SecVI/PtA.6.)

- Accumulation plan may substitute plan year compensation, (Ch9/SecVI/PtA.7.)

- Averaging period must be at least 3 years, (Ch9/SecVI/PtA.6.b.)

- Compensation dollar limit applies, (Ch3B/SecII/PtB.3.b.)

- Compensation history taken into account, (Ch9/SecVI/PtA.6.c.)

- Drop-out years, (Ch9/SecVI/PtA.6.d.)

- Section 414(s) compensation definition must be used, (Ch9/SecVI/PtA.6.a.)

* Benefits, rights and features must be available on nondiscriminatory basis, see Availability of benefits, rights and features above

* Cash balance plans, see Safe harbor plans below

* Cash or deferred arrangement

- Nonqualified CODA must satisfy §401(a)(4), (Ch1B/Def-NonqualifiedCODA)

◆ Union exception, (Ch11/SecXII/PtI.3.)

- Qualified arrangement must satisfy ADP test under §401(k), see ADP AND ACP TESTING

* Catch-up contributions: impact on §401(a)(4) testing

- Current-year contributions disregarded when performing rate group test, (Ch9/SecIV/PtC.3.a.5))

- Universal availability requirement, (Ch11/SecXII/PtE.2.d.)

◆ Acquisitions: transition period for meeting universal availability requirement, (Ch11/SecXII/PtE.2.d.6))

◆ Applies to all plans that are subject to IRC §401(a)(4), (Ch11/SecXII/PtE.2.d.1))

◆ Effective opportunity to make catch-up contributions must be provided, (Ch11/SecXII/PtE.2.d.4))

◆ Exception for union plans, (Ch11/SecXII/PtE.2.d.2))

◆ Exception for Puerto Rican plans, (Ch11/SecXII/PtE.2.d.7))

◆ Ineligibility for participants under age 50 to make catch-up contributions is not a discrimination testing issue, (Ch11/SecXII/PtE.2.d.5)b))

◆ Non-uniform plan-imposed limits do not necessarily violate universal availability rule, (Ch11/SecXII/PtE.2.d.5))

◆ Related employers treated as single employer for purposes of this rule, (Ch11/SecXII/PtE.2.d.3))

* Checklist of coverage and nondiscrimination testing issues, (Ch15/SecV/PtB)

* Churches subject to good faith compliance standard, (Ch9/SecXI/PtJ.1.a.)

* Compensation definition used to apply nondiscrimination testing must satisfy §414(s), (Ch9/SecIII/PtA.1.a.1)), (Ch9/SecIII/PtA.2.)(Ch9/SecVI/PtA.6.)  Also see COMPENSATION (Section 414(s) compensation)

* Compensation dollar limit: fresh start for section 401(a)(17) employees when applying §401(a)(4), (Ch9/SecVIII/PtA.3.)

* Contributory defined benefit plans, see Employee contributions below

* Coverage

- Coordination of nondiscrimination testing with coverage testing, (Ch9/SecIX/PtA)

- Coverage testing principles used in nondiscrimination testing, see Rate group testing below

* Cross-tested plans, see Rate group testing below

* Current availability of benefits, rights and features, see Availability of benefits, rights and features above

* Deemed compliance with nondiscrimination testing

- All employees are HCEs, (Ch9/SecXI/PtB)

- Only NHCs benefit under plan, (Ch9/SecXI/PtA)

* Defined benefit replacement allocations, (Ch9/SecIV/PtB.4.b.4)a))(Ch9/SecIV/PtB.4.c.8))

* Definition of nondiscrimination for qualified plan purposes, (Ch1B/Def-Nondiscrimination)

* Design-based safe harbor plans, see Safe harbor plans below

* Determination letter on nondiscrimination testing compliance no longer available, (Ch9/SecXI/PtK.2.d.)

* Differential wage payments: contributions/benefits provided generally disregarded from nondiscrimination testing, (Ch9/SecXI/PtL.1.)

- Optional inclusion in testing if it helps to pass, (Ch9/SecXI/PtL.1.c.1))

* Disaggregation of a plan into separate portions for testing purposes, (Ch9/SecIX/PtC)

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

- Otherwise excludable employees, see Otherwise excludable employees above

- Treating benefits as attributable to a certain disaggregation population for coverage and nondiscrimination testing purposes, (Ch8/SecVIII/PtA.7.b.)

* Distribution restrictions under defined benefit plans limit amount that may be paid to HCE in certain circumstances, (Ch9/SecXI/PtD)

- Payments at plan termination must be nondiscriminatory, (Ch9/SecXI/PtD.2.)

- Restricted amount may be paid if adequate security given, (Ch9/SecXI/PtD.2.b.)

◆ Plan not required to offer option of giving security, (Ch9/SecXI/PtD.2.b.1))

* Early termination restrictions, see Distribution restrictions on defined benefit plans above

* Effective availability of benefits, rights and features, see Availability of benefits, rights and features above

* Elective transfers disregarded in determining whether contributions or benefits are nondiscriminatory, (Ch9/SecXI/PtF)

* Employee contributions

- Defined benefit plans

◆ Mandatory contributions (contributory defined benefit plans): how §401(a)(4) testing is applied, (Ch9/SecII/PtC.2.a.)

. . . Determining employer-derived benefit, (Ch9/SecVIII/PtC.1.)

. . . Testing the employee-derived benefit for nondiscrimination, (Ch9/SecVIII/PtC.2.)

◆ Voluntary contributions separately tested as if made to defined contribution plan, (Ch9/SecII/PtC.2.) Also see ADP AND ACP TESTING, SECTION 401(m) PLANS

- Defined contribution plan: separate testing of mandatory or voluntary employee contributions, (Ch9/SecII/PtC.2.) Also see ADP AND ACP TESTING, SECTION 401(m) PLANS

* Employer-derived benefit: determination under contributory defined benefit plan, (Ch9/SecVIII/PtC.1.)

* ESOPs: limitations on nondiscrimination testing, (Ch9/SecXI/PtO)

* Establishment of plan, see Amendment of plan above

* Excluding categories of compensation for allocation or benefit accrual: effect on safe harbor plans, (Ch9/SecVI/PtA.6.a.) Also see COMPENSATION (Section 414(s) compensation)

* Factor tables

- Cross-testing a defined contribution plan, (Ch9/AppA)

- Target benefit funding calculation, (Ch9/AppB)

* Failing nondiscrimination testing, correction of, see Retroactive correction of discrimination below

* Floor offset arrangements, see Offset arrangements below

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

* Former employees: separate nondiscrimination testing, (Ch9/SecXI/PtI)

- Post-severance compensation allocations under DC plan does not trigger separate testing of former employees, (Ch9/SecXI/PtI.4.)

* Fractional rule accrual DB plans: safe harbor test, (Ch9/SecVI/PtA.3.)

* Fresh-start adjustments for defined benefit plans, (Ch9/SecVIII/PtA)

- Formula with extended wear away, (Ch9/SecVIII/PtA.1.c.)

- Formula with wear away, (Ch9/SecVIII/PtA.1.b.)

- Formula without wear away, (Ch9/SecVIII/PtA.1.a.)

* Fully insured DB plans, (Ch9/SecVI/PtA.4.)

* Gateway test for benefits-testing ("cross-testing") DC plans, (Ch9/SecIV/PtB.4.a.)

- "Age-based" allocation plans usually do not have to satisfy gateway,

◆ Gradual age or service schedule required for determining allocations of employer contributions, (Ch9/SecIV/PtB.4.c.1))

- Aggregation and disaggregation rules apply to determine if gateway test is satisfied, (Ch9/SecIV/PtB.4.a.6))

- "DB/DC plan" must satisfy special gateway test before plan may be tested on a benefits basis, (Ch9/SecIX/PtB.5.)

◆ Averaging of NHC allocation rates, (Ch9/SecIX/PtB.5.c.3))

◆ DB and DC plans aggregated solely for average benefits ratio test do not constitute a DB/DC plan, (Ch9/SecIX/PtB.5.a.1))

◆ Closed DB plan exception to gateway requirement, (Ch9/SecIX/PtB.5.d.4))

. . . Temporary relief under Notice 2014-5 (as extended by subsequent Notices), (Ch9/SecIX/PtB.5.f.)

◆ Floor-offset arrangements not subject to gateway test, (Ch9/SecIV/PtB.5.a.2))

◆ Matching contributions: proposed regulations would allow certain matching contributions to be counted in DB/DC plan gateway test, (Ch9/SecIX/PtB.5.c.3)b))

◆ Offsets: treatment for gateway purposes, (Ch9/SecIX/PtB.5.d.5))

◆ "Primarily defined benefit" DB/DC plan is not subject to gateway test, 

- Gateway contribution test, (Ch9/SecIV/PtB.4.a.)

◆ Compensation definition used, (Ch9/SecIV/PtB.4.a.3))

◆ Five-percent "safe harbor" contribution will satisfy gateway, (Ch9/SecIV/PtB.4.a.)

◆ Only NHCs who benefit for the plan year must receive gateway contribution, (Ch9/SecIV/PtB.4.a.5))

◆ Partial-year compensation may be used for participant who is not eligible for the entire plan year, (Ch9/SecIV/PtB.4.a.4))

- Gateway test not applicable if allocation rates are "broadly available" to a nondiscriminatory group of employees, 

◆ Defined benefit replacement allocations (DBRA) disregarded under certain circumstances, (Ch9/SecIV/PtB.4.b.4))

- Matching contributions do not count toward satisfying gateway, (Ch9/SecIV/PtB.4.a.7))

◆ Exception proposed for applying DB/DC plan gateway test, (Ch9/SecIX/PtB.5.c.3)b))

- Target benefit plan exception to gateway test, (Ch9/SecIV/PtB.4.c.7))

* General nondiscrimination test, see Rate group testing below

* Governmental plans exempt from nondiscrimination testing, (Ch9/SecXI/PtJ.2.)

- Status of plans maintained by Indian tribal governments, (Ch9/SecXI/PtJ.2.b.)

* Highest 25 HCEs: restricted payouts under defined benefit plans, (Ch6/SecIII/PtA.1.b.)

* Highly compensated employees (HCEs)

- Definition of HCEs, see HIGHLY COMPENSATED EMPLOYEES

* Imputed service credits must be nondiscriminatory, (Ch9/SecXI/PtE.2.c.)

* Imputing permitted disparity, see (Ch1B/Def-PermittedDisparity)

* Life insurance contracts: discriminatory rights can affect plan's qualification, (Ch9/SecX/PtA.6.)

* Limited participants with right to make rollover before becoming eligible for plan

- BRF testing, see Availability of benefits, rights, and features above

- Section 401(k) test: effect of limited participants, see ADP AND ACP TESTING

- Section 401(m) test: effect of limited participants, see ADP AND ACP TESTING

* Mandatory contributions under defined benefit plans, see Employee contributions above

* Matching contributions: testing for nondiscrimination, see ADP AND ACP TESTING

* Military service period

- Nondiscrimination testing not affected by makeup contributions for military service period, (Ch9/SecXI/PtL)

* Minimum distribution options after age 70½, special nondiscrimination testing rules for, see Availability of benefits, rights and features above

* Multiple formulas: effect on safe harbor tests, (Ch9/SecVI/PtC.6.), (Ch9/SecIII/PtD.5.)

* New comparability plans, (Ch9/SecIV/PtE.3.)

- Case studies illustrating new comparability plan design, (Ch9/AppC)

- Discussion of plan design considerations, (Ch9/SecIV/PtE.3.)

- Each participant designated as separate allocation group, (Ch9/SecIV/PtE.4.a.1)c))

- "Gateway" test before DC plans can test nondiscrimination on the basis of benefits (i.e., cross-test) in post-2001 plan years, see Gateway test above

- Separate discretionary contributions for separate allocation groups, (Ch9/SecIV/PtE.4.a.)

- "Super-integrated" plans, (Ch9/SecIV/PtE.4.d.)

* Non-design-based safe harbor plans, see Safe harbor plans below

* Nonqualified cash or deferred arrangement subject to §401(a)(4) testing, (Ch1B/Def-NonexcludableEmployee), (Ch1B/Def-NonqualifiedCODA)

* Normal retirement date, see Safe harbor plans below

* Normalizing the benefit, see Rate group testing below

* Offset arrangements under defined benefit plans, (Ch9/SecVIII/PtB)

- Pre-participation or past service, (Ch9/SecVIII/PtB.1.)

- Safe harbor for certain floor-offset arrangements, (Ch9/SecVIII/PtB.2.)

* Optional forms of benefit must be available on nondiscriminatory basis, see Availability of benefits, rights and features above

* Otherwise excludable employees: effect of disaggregation of these employees on nondiscrimination tests, (Ch9/SecIV/PtD.5.)

* Overview of nondiscrimination testing, (Ch9/SecII)

* Participant loans: nondiscriminatory availability issues

- Coordination of nondiscrimination testing with prohibited transaction rules on participants loans, (Ch9/SecX/PtA.5.)

- Former employees: special rule allows exclusion from loan program, (Ch9/SecXI/PtI.2.a.)

- Minimum loan requirement not exceeding $1,000 disregarded for BRF testing purposes, (Ch9/SecX/PtB.2.e.1))

* Past service credits

- Must be nondiscriminatory, (Ch9/SecXI/PtC.2.), (Ch9/SecXI/PtC.2.)

- Safe harbor for past service credits, (Ch9/SecXI/PtC.2.)

* Permitted disparity

- Contribution and benefit formulas that incorporate disparity, (Ch1B/Def-PermittedDisparity)

- Imputing disparity to perform nondiscrimination tests, (Ch1B/Def-PermittedDisparity)

* Plan amendments, see Amendment of plan above

* Plan termination, see Termination of plan below

* Plan year compensation used to apply safe harbor tests under DC plans, (Ch9/SecIII/PtA.1.a.1))

* Pre-participation service credits must be nondiscriminatory, (Ch9/SecXI/PtE.2.)

* QSLOB testing option, see QSLOB RULES

* Qualified nonelective contributions (QNECs)

- Nondiscrimination testing rules of §401(a)(4) apply, (Ch9/SecII/PtC.4.)(Ch11/SecIX/PtA.1.b.)

* Rate group testing ("general nondiscrimination test"), (Ch9/SecIV/PtB) (DC plans), (Ch9/SecVII/PtA) (DB plans)

- Coverage principles used to perform rate group testing, (Ch9/SecIV/PtC)

◆ Average benefits test, (Ch9/SecIV/PtC.2.)

. . . Proposal to require reasonable classificiation test if rate group relies on average benefits test withdrawn, (Ch9/SecIV/PtC.2.a.1))

◆ Other plans maintained by employer, (Ch9/SecIV/PtC.3.b.)

. . . Section 401(k) or 401(m) arrangements included in the average benefits test, (Ch9/SecIV/PtC.3.a.)

◆ Ratio test may be used to determine if rate groups are nondiscriminatory, (Ch9/SecIV/PtC.1.)

◆ Special rules and testing options, (Ch9/SecIV/PtD)

- Cross-testing, (Ch9/SecIV/PtB.2.) (DC plans), (Ch9/SecIV/PtB.2.) (DB plans)

◆ Case studies illustrating new comparability plan design, (Ch9/AppC)

◆ Cash balance plans: safe harbor test on a contributions basis, (Ch9/SecVII/PtC.1.)

◆ DC plan designs geared to cross-testing, (Ch9/SecIV/PtE.3.)

◆ Equivalent allocation rates under defined benefit plans, (Ch9/SecII/PtC.2.a.)

◆ Equivalent benefit rates under defined contribution plans, (Ch9/SecIV/PtB.2.)

◆ Factor table, (Ch9/AppA)

◆ Gateway test must be satisfied before a DC plan may be cross-tested, (Ch9/SecIV/PtB.4.)

◆ New comparability plans, (Ch9/SecIV/PtE.3.)

◆ Target benefit plans, (Ch9/SecV)

- Determining rate groups under a defined benefit plan

◆ Identifying the rate groups based on accrual rates, (Ch9/SecVII/PtB.4.)

◆ Imputing permitted disparity, see (Ch1B/Def-PermittedDisparity)

◆ Most valuable accrual rate, (Ch9/SecVII/PtB.2.)

◆ Normal accrual rate, (Ch9/SecVII/PtB.1.)

◆ Normalized benefit at testing age, (Ch9/SecVII/PtB.1.c.)

◆ "Safety valve" exception, (Ch9/SecVII/PtD.3.)

◆ Section 415 limits normally disregarded to determine accrual rates, (Ch9/SecVII/PtB.3.)

◆ Special rules and testing options, (Ch9/SecVII/PtD)

◆ Testing age, (Ch9/SecVII/PtB.1.c.1))

◆ Testing service, (Ch9/SecVII/PtB.1.b.)

- Determining rate groups under a defined contribution plan, (Ch9/SecIV/PtB)

◆ Accrued-to-date method, (Ch9/SecIV/PtB.2.b.)

◆ Allocation rates, (Ch9/SecIV/PtB.1.)

◆ Cross-testing the defined contribution plan, (Ch9/SecIV/PtB.2.)

◆ Current year method, (Ch9/SecIV/PtB.2.b.1))

◆ Equivalent benefit rates (cross-testing), (Ch9/SecIV/PtB.2.)

◆ Identifying the rate groups, (Ch9/SecIV/PtB.3.)

◆ Imputing permitted disparity, see (Ch1B/Def-PermittedDisparity)

◆ Range of rates may be treated as single rate, (Ch9/SecIV/PtD.2.)

◆ Sample tests, (Ch9/SecIV/PtC.4.)

- Gateway test for DC plans to use cross-testing, (Ch9/SecIV/PtB.4.)

Also see Gateway test for benefits testing above

- Imputing permitted disparity to determine allocation rates or benefit rates, (Ch1B/Def-PermittedDisparity)

- Measurement period for determining benefits, (Ch9/SecIV/PtB.2.b.) (DC plans), (Ch9/SecIV/PtB.2.b.) (DB plans)

- No compensation received by otherwise eligible employee, (Ch9/SecIV/PtB.1.d.)

- Plan designs (DC) that use rate group testing, (Ch9/SecIV/PtE)

- Safe harbor nonelective contributions under safe harbor 401(k) plan may be taken into account, (Ch9/SecIV/PtD.4.b.)

◆ Effect of safe harbor nonelective contribution on gateway requirement for cross-tested plans, (Ch9/SecIV/PtB.4.d.)

- Target benefit plans that do not satisfy safe harbor test, (Ch9/SecV/PtB)

* Related employers

- Coverage transition rule: effect on nondiscrimination testing, (Ch9/SecXI/PtK.2.)

- Effect of related group on nondiscrimination testing, (Ch9/SecXI/PtK.1.)

- Safe harbor DC plan must provide uniform allocations if more than one related employer participates, (Ch9/SecIII/PtD.5.e.)

- Treated as single employer for nondiscrimination testing purposes, (Ch9/SecXI/PtK.1.)

* Restructuring a plan into separate components for testing purposes, (Ch9/SecIX/PtD)

- Gateway test for cross-testing DC plans may not be met on a restructured basis, (Ch9/SecIX/PtD.3.)

- Minimum participation test under §401(a)(26) need not be satisfied by restructured component groups, (Ch9/SecIX/PtD.5.)

- Uniform points plan testing rule not available for restructured component of plan, (Ch9/SecIX/PtD.[amp]#206;.)

* Retroactive correction of discrimination, (Ch9/SecX)

- 9½ months following close of plan year to correct, (Ch9/SecXII/PtA)

- Corrective amendment to make benefits, rights and features available on nondiscriminatory basis, (Ch9/SecXII/PtB)

- Corrective amendment to make contributions or benefits nondiscriminatory, (Ch9/SecXII/PtA)

* Rights and features must be available on nondiscriminatory basis, see Availability of benefits, rights and features above

* Rollovers

- Disregarded in determining whether contributions or benefits are nondiscriminatory, (Ch9/SecXI/PtF)

* Rollovers as Business Start-ups (ROBS): nondiscrimination testing issues identified by IRS, (Ch7/SecIV/PtG)

* Safe harbor 401(k) plans, see SAFE HARBOR 401(k) PLANS

* Safe harbor plans under §401(a)(4), (Ch9/SecII/PtB) (Overview), (Ch9/SecIII/PtA) (DC plans), (Ch9/SecV/PtA) (target benefit plan), (Ch9/SecII/PtB) (DB plans)

- Accumulation plan (type of defined benefit plan), (Ch9/SecVI/PtA.7.)

- Average annual compensation, determination of, see Average annual compensation above

- Cash balance plan safe harbor for testing on a contributions basis, (Ch9/SecVII/PtC.1.)

- Contributory defined benefit plans: application of safe harbor rules, (Ch9/SecVIII/PtC.2.)

- Definition of a safe harbor plan for §401(a)(4) purposes, (Ch9/SecIII/PtA) (DC plans), (Ch9/SecII/PtB) (DB plans)

- Design-based safe harbor for defined benefit plans, (Ch9/SecVI/PtA)

◆ Accrual period must be over same years of service taken into account under benefit formula, (Ch9/SecVI/PtA.1.b.)

◆ Accrual requirements permitted under §411(b)(4) will not affect safe harbor status, (Ch9/SecVI/PtC.2.)

◆ Average annual compensation, determination of, see Average annual compensation above

◆ Benefit formula must produce uniform annual benefit, (Ch9/SecVI/PtA.1.)

◆ Fractional rule accrual plans: safe harbor formula, (Ch9/SecVI/PtA.3.)

. . . Twenty-five years minimum accrual service required, (Ch9/SecVI/PtA.3.c.)

◆ Limits on accruals, (Ch8/SecVIII/PtA.7.)

◆ Lower benefits for HCEs permitted, (Ch9/SecVI/PtC.4.)

◆ Multiple formulas, (Ch9/SecIII/PtD.5.)

◆ Normal retirement date: special rules, (Ch9/SecVI/PtA.1.a.1)a))

◆ Permitted disparity formula is safe harbor, (Ch9/SecVI/PtA.5.) Also see (Ch1B/Def-PermittedDisparity)

◆ Prior accruals under a prior formula, (Ch9/SecVI/PtC.5.)

◆ Subsidies must be available on uniform basis, (Ch9/SecVI/PtA.1.c.)

◆ Uniform normal retirement age, (Ch9/SecVI/PtA.1.a.1))

◆ Uniformity requirements, (Ch9/SecVI/PtA.1.)

◆ Unit credit plans: safe harbor formula, (Ch9/SecVI/PtA.2.)

- Design-based safe harbor for defined contribution plans, (Ch9/SecIII/PtA)

◆ Allocation requirements will not affect safe harbor status, (Ch9/SecIII/PtD.2.)

◆ Compensation used to determine allocations must satisfy section 414(s), (Ch9/SecIII/PtA.2.) Also see COMPENSATION (Section 414(s) compensation)

◆ Uniform dollar amount allocation, (Ch9/SecIII/PtA.1.b.)

◆ Entry dates permitted, even if plan year compensation affected, (Ch9/SecIII/PtD.1.)

◆ ESOP allocations restricted by §409(n), (Ch9/SecIII/PtD.3.a.)

◆ IRS determination letter on whether compensation definition is discriminatory is no longer available, (Ch9/SecIII/PtA.2.b.)

◆ Limits on allocations permitted, (Ch9/SecIII/PtD.3.)

◆ Lower allocations for HCEs permitted, (Ch9/SecIII/PtD.4.)

◆ Multiple formulas, (Ch9/SecVI/PtC.6.)

◆ Percentage of compensation allocation may be uniform, (Ch9/SecIII/PtA.1.a.)

◆ Permitted disparity formula is a design-based safe harbor, (Ch9/SecIII/PtA.1.a.3)) Also see (Ch1B/Def-PermittedDisparity)

◆ Plan designs that provide uniform allocations, (Ch9/SecIII/PtA.1.a.2))

◆ Plan year compensation, (Ch9/SecIII/PtA.1.a.1))

◆ S corporation ESOP: prohibited allocation rules under IRC §409(p), (Ch9/SecIII/PtD.3.b.)

◆ Section 414(s) compensation must be used, (Ch9/SecIII/PtA.2.) Also see COMPENSATION(Section 414(s) compensation)

◆ Target benefit plans: safe harbor test, (Ch9/SecV/PtA)

◆ Uniform allocation required, (Ch9/SecIII/PtA.1.)

- Floor-offset arrangements: safe harbor, (Ch9/SecVIII/PtB.2.)

- Forfeitures must be allocated same way as employer contributions, (Ch9/SecIII/PtC)

- Fully-insured DB plans: safe harbor, (Ch9/SecVI/PtA.4.)

- Mandatory contributions under defined benefit plans: application of safe harbor rules, (Ch9/SecVIII/PtC.2.)

- Multiple allocation formulas under DC plan, (Ch9/SecVI/PtC.6.)

◆ QNECs under section 401(k) or 401(m) plans, (Ch9/SecIII/PtD.5.c.3))

◆ Top heavy formulas must satisfy certain conditions in order to maintain design-based safe harbor, (Ch9/SecIII/PtD.5.d.)

- Multiple benefit formulas under DB plan, (Ch9/SecIII/PtD.5.)

- Non-design-based safe harbor for defined contribution plans ("uniform points plans"), (Ch9/SecIII/PtB)

◆ Allocation rates averaged, (Ch9/SecIII/PtB.2.)

- Non-design-based safe harbor for defined benefit plans, (Ch9/SecVI/PtB)

◆ Accrual rates averaged, (Ch9/SecVI/PtB.2.)

◆ Fixed benefit formulas only, (Ch9/SecVI/PtB.1.)

- Past service credits safe harbor, (Ch9/SecXI/PtC.2.), (Ch9/SecXI/PtC.2.)

- Permitted disparity formulas, see (Ch1B/Def-PermittedDisparity)

- Plan provisions that do not affect safe harbor status, (Ch9/SecIII/PtD.3.) (DC plans), (Ch9/SecIII/PtD) (DB plans)

- QNECs: effect on safe harbor status, (Ch9/SecXI/PtD.5.c.3))

- Related employers maintaining a single plan: multiple allocation formulas may void safe harbor status, (Ch9/SecXI/PtD.5.e.)

- Section 415 limits: impact on safe harbor DB plan, (Ch9/SecVI/PtA.3.c.3))

- Standard interest rate and mortality table, (Ch9/SecV/PtA.3.b.1))

- Target benefit plans: safe harbor plan design, (Ch9/SecV/PtA)

◆ Calculation of employer contribution under regulatory funding method, (Ch9/SecV/PtA.3.)

◆ Factor tables for calculating employer contribution, (Ch9/AppB)

◆ Forfeitures must be allocated to reduce employer contributions, (Ch9/SecV/PtA.2.)

◆ Formula must satisfy defined benefit plan safe harbor rules, (Ch9/SecV/PtA.1.)

◆ Standard interest rate and mortality table, (Ch9/SecV/PtA.3.b.1))

- Top heavy formulas: providing only minimum allocation or benefit may void safe harbor status, (Ch9/SecIII/PtD.5.d.), (Ch9/SecIII/PtD.5.)

- Uniform normal retirement age required for safe harbor DB plan, (Ch9/SecVI/PtA.1.a.1))

- Uniform points plan: special safe harbor testing rule, (Ch9/SecIII/PtB)

- Unit credit plans: safe harbor plan design, (Ch9/SecVI/PtA.2.)

* Section 401(k) arrangements subject to separate nondiscrimination testing, (Ch9/SecII/PtC.1.) Also see ADP AND ACP TESTING, SECTION 401(k) PLANS

* Section 403(b) plans: nondiscrimination testing requirements, (Ch16/SecII/PtG)

* Section 415 limits, impact of, see Rate group testing and Safe harbor plans above

* Separate discretionary contribution formulas for specified allocation groups, see New comparability plans above

* Separate plans for different classes of participants: approach to nondiscrimination testing, (Ch9/SecIV/PtE.4.e.)

* Service crediting rules must be nondiscriminatory, (Ch9/SecXI/PtE)

- Effect of a discriminatory crediting of service, (Ch9/SecXI/PtE.2.e.)

- Imputed service credits, (Ch9/SecXI/PtE.2.c.)

- Pre-participation service credits, (Ch9/SecXI/PtE.2.b.)

- Regulatory methods of crediting service are deemed to be equivalent, (Ch9/SecXI/PtE.1.a.)

- Service required to be credited by statute or regulations is deemed nondiscriminatory, (Ch9/SecXI/PtE.2.d.)

* "Short-term" employees: plans providing contributions made to such employees to pass IRC §401(a)(4) may be abusive plan designs, (Ch9/SecXI/PtP)

* SIMPLE-IRA plans exempt from nondiscrimination testing, (Ch12/SecV/PtH.3.)

* Simplified procedures for substantiating nondiscrimination, (Ch9/SecXI/PtH)

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

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

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

* Standard interest rate and mortality table, (Ch9/SecV/PtA.3.b.1))

* Substantiation quality data may be used to test discrimination under certain circumstances, (Ch9/SecXI/PtH.1.)

* Super-integrated plans, (Ch9/SecIV/PtE.4.d.)

* Target benefit plans, see Rate group testing and Safe harbor plans above

* Termination of plan

- Benefits paid to HCEs and former HCEs limited to amount that is nondiscriminatory, (Ch9/SecXI/PtD.1.)

- Distribution restricted for HCEs for certain distributions occurring before plan termination, (Ch9/SecXI/PtD.2.)

- Majority owner may forego receipt of benefits to ensure satisfaction with nondiscrimination requirement, (Ch9/SecXI/PtD.1.a.)

- Treated as plan amendment, see Amendment of plan above

* Testing age, see Rate group testing above

* Testing service, see Rate group testing above

* Three-year testing cycle permitted under certain circumstances, (Ch8/SecVIII/PtK.2.)

* Top heavy formulas: effect on safe harbor plans, (Ch9/SecIII/PtD.5.d.), (Ch9/SecIII/PtD.5.)

* Uniform normal retirement age, see Safe harbor plans above

* Uniform points plan, see Safe harbor plans above

* Universal availability requirement for catch-up contributions, see (Ch11/SecVI/PtC.1.g.) above

* USERRA: makeup contributions required for certain employees who return from military service, (Ch9/SecXI/PtL)

* Vesting must be nondiscriminatory, (Ch9/SecXI/PtG)

- Passing BRF test is a safe harbor, (Ch9/SecXI/PtG.2.)

NONDISCRIMINATORY CLASSIFICATION TEST, see COVERAGE TESTING

NONELECTIVE CONTRIBUTIONS, see EMPLOYER CONTRIBUTIONS

NONEXCLUDABLE EMPLOYEE, see COVERAGE TESTING

NONFORFEITABLE, see VESTING RULES

NONHIGHLY COMPENSATED EMPLOYEE, see HIGHLY COMPENSATED EMPLOYEE

NONINTEGRATED PLAN, see PERMITTED DISPARITY

NONPENSION PLAN, see PENSION PLAN

NONQUALIFIED CODA, see SECTION 401(k) PLANS

NONQUALIFIED DEFERRED COMPENSATION ARRANGEMENTS

* Amendment deadlines delayed to end of 2008, (Ch16/SecIV/PtB.6.b.1))

* American Jobs Creation Act adds IRC §409A for post-2004 deferred compensation, (Ch16/SecIV/PtB)

* Back-to-back arrangements, (Ch16/SecIV/PtA.3.a.1)m))

* Comparison of qualified arrangements with nonqualified arrangements, 

* Constructive receipt doctrine, (Ch16/SecIV/PtA.2.a.)

* Defined benefit plan in a restricted period: effect of set asides for nonqualified deferred compensation, (Ch16/SecIV/PtB.5.e.)

* Definition of nonqualified deferred compensation plan, 1B.4, (Ch1B/Def-NonqualifiedDeferredCompensationPlan)

* Divorce: division of nonqualified plan interest, (Ch16/SecIV/PtE)

* Economic benefit doctrine, (Ch16/SecIV/PtA.2.b.)

* Expatriation can trigger special tax rules, see EXPATRIATION

* Excess benefit plans, see EXCESS BENEFIT PLANS

* FICA rules for nonqualified deferred compensation, (Ch16/SecIV/PtC)

* Forfeiture or other loss of rights to previously-taxed nonqualified deferred compensation, (Ch16/SecIV/PtB.1.e.5))

* IRC§409A imposes additional requirements on nonqualified plans, (Ch16/SecIV/PtB)

- Acceleration of payments generally prohibited, (Ch16/SecIV/PtB.3.d.)

- Aggregation rules, (Ch6/SecVII/PtJ.3.)

- Change of control events under which distribution is permitted, (Ch16/SecIV/PtB.3.c.)

◆ Acquisition of equity by Treasury Dept. pursuant to stimulus legislation is not a change of control, (Ch16/SecIV/PtB.3.c.7))

- Computing amounts includible in income under IRC §409A

◆ Interim guidance, (Ch16/SecIV/PtB.1.d.)

◆ Proposed regulations, (Ch16/SecIV/PtB.1.e.)

- Distribution restrictions under IRC §409A, (Ch16/SecIV/PtB.3.)

- Effective date of IRC §409A, (Ch16/SecIV/PtB.6.)

- Election rules

◆ Initial deferral election, (Ch16/SecIV/PtB.4.a.)

◆ Subsequent deferral election to change initial election, (Ch16/SecIV/PtB.4.b.)

- Equity-based compensation (stock rights), (Ch16/SecIV/PtB.2.b.2))

- Establishment of a plan for IRC §409A purposes, (Ch16/SecIV/PtB.2.c.3))

- Foreign arrangements, (Ch16/SecIV/PtB.2.b.4))

- Grandfathered amounts, (Ch16/SecIV/PtB.6.a.)

- Key employees ("specified employees") subject to special restrictions, (Ch16/SecIV/PtB.3.b.1)b))

- Linkage to qualified plans, (Ch16/SecIV/PtB.3.e.)

◆ Transition relief for corrections made by end of 2011, (Ch16/SecIV/PtB.1.g.2)b))

- Material modifications after October 3, 2004, (Ch16/SecIV/PtB.6.c.)

- Plans subject to IRC §409A(definition of plan of deferred compensation), (Ch16/SecIV/PtB.2.))

- Recurring part-year compensation, (Ch16/SecIV/PtB.2.b.13)

- Relief for certain document failures that are corrected, (Ch16/SecIV/PtB.1.g.1))

- Relief for certain operational failures that are corrected, (Ch16/SecIV/PtB.1.f.). (Ch16/SecIV/PtB.1.f.)

- Restricted property, (Ch16/SecIV/PtB.2.b.3))

- Separation pay arrangements, (Ch16/SecIV/PtB.2.b.5))

- Short-term deferrals, (Ch16/SecIV/PtB.2.b.1))

- Stock appreciation rights (SARs), (Ch16/SecIV/PtB.2.b.2))

- Stock rights are subject to IRC §409A unless exception applies, (Ch16/SecIV/PtB.2.b.2))

- Substantial risk of forfeiture, (Ch16/SecIV/PtB.1.b.)

- TARP: exception from timing rules, (Ch16/SecIV/PtB.3.f.)

- Tax sanctions if plan fails to comply, (Ch16/SecIV/PtB.1.)

- Timing of deferral election under nonqualified plan, (Ch16/SecIV/PtB.3.e.3))

- Transitional rules under IRC §409A, (Ch16/SecIV/PtB.6.b.)

- Unintentional operational failures that are corrected: relief from IRC §409A sanctions, (Ch16/SecIV/PtB.1.f.)

- Voluntary compliance correction program, (Ch16/SecIV/PtB.1.f.) (operational failures), (Ch16/SecIV/PtB.1.g.) (document failures)

- W-2 reporting requirements, (Ch16/SecIV/PtB.5.c.1))

* Matching of employer's deduction with employee's income inclusion, (Ch16/SecIV/PtA.1.)

* Rabbi trust, (Ch1B/Def-RabbiTrust)

* Recovery of basis rules for nonqualified plan payments made after year of income inclusion, (Ch16/SecIV/PtB.1.e.4))

* Reporting requirements for nonqualified plans, (Ch16/SecIV/PtB.5.c.)

* Section 457 applies to nonqualified plans maintained by tax-exempt organizations, (Ch16/SecIV/PtA) Also see SECTION 457 PLANS

- IRC §409A rules apply to IRC §457(f) arrangements, but not IRC §457(b) arrangements, (Ch16/SecIV/PtB.2.d.)

* Secular trusts, (Ch16/SecIV/PtF)

- IRS guidance on IRC §402(b)(4) tax consequences, (Ch16/SecIV/PtF.5.)

* Select group of management and highly compensated employees: nonqualified plans to cover such employees, see TOP HAT PLANS

* SERPs (Supplemental Executive Retirement Plans)

- Definition, (Ch1B/Def-PreApprovedPlan)

* Supplemental executive retirement plans (SERPs), see SERPs above

* Tandem arrangement with 401(k) plan, (Ch16/SecIV/PtD)

* "Tax indifferent" entities providing nonqualified deferred compensation (IRC §457A), (Ch16/SecIV/PtG)

* Top hat plans, see TOP HAT PLANS

* Transfers of nonqualified plan interests in divorce, (Ch16/SecIV/PtE)

* Unfunded arrangements, (Ch16/SecIV/PtA.3.b.)

* Waiver of penalties with respect to 2005, (Ch16/SecIV/PtB.5.c.3)a))

* Welfare benefit plans that are actually deferred compensation plans, (Ch16/SecIV/PtA.1.c.)

- Listed transaction treatment for certain welfare benefit trust arrangements, (Ch16/SecIV/PtA.1.c.3))

* Why have a nonqualified plan? (Ch16/SecIV/PtA.4.)

* Withholding rules, (Ch7/SecVIII/PtD)

* Wrap arrangement with 401(k) plan, (Ch16/SecIV/PtD)

NONRECOGNITION OF GAIN

* Sales of certain employer securities to ESOPs (IRC §1042), (Ch6/SecIII/PtD.2.k.)

NONRESIDENT ALIENS

* Canadian retirement plans

- Deemed election to defer taxation, (Ch7/SecIII/H.2.a.1))

- Distributions to U.S. citizen not eligible for rollover to U.S. plans or IRAs, (Ch7/SecIV/PtB.9.)

- Tax issues for U.S. citizens and residents with Canadian retirement plans, (Ch7/SecIII/H.2.a.1))

* Definition of nonresident alien, (Ch1B/Def-NonresidentAlien)

* Distributions to U.S. citizens or residents who were once nonresident aliens, (Ch7/SecIII/PtH.1.d.)

* Excludable employee from coverage testing, see COVERAGE TESTING

* Excluded from highly compensated employee determination, (Ch1A/Def-InterestedParty/PtB)

* Rollover rules: application to distributions from foreign plans, see Canadian retirement plans above

* SIMPLE-IRA plans: exclusion of nonresident aliens, see SIMPLE PLANS

* Taxation of distributions to nonresident aliens, (Ch7/SecIII/PtH.1.)

- Annuity payments excludable from income, (Ch7/SecIII/PtH.1.c.)

- Determination of portion attributable to U.S. source income, (Ch7/SecIII/PtH.1.a.)

- Tax rate of 30% imposed, (Ch7/SecIV/PtH.1.b.)

- Tax treaty may reduce tax, (Ch7/SecIII/PtH.1.b.2))

* U.S. source income, (Ch7/SecIII/PtH.1.a/.)

NONTRANSFERABLE ANNUITY CONTRACT, see TAXATION OF BENEFITS

NONTRUSTEED PLAN, see TRUST

NORMAL RETIREMENT AGE

* Accruals after attaining NRA, see ACCRUAL OF BENEFITS

* Age 67 NRA permitted so long as age-65 benefit satisfied ERISA requirements, (Ch1B/Def-NormalRetirementAge/PtB)

* Definition of NRA, (Ch1B/Def-NormalRetirementAge)

* Governmental plan

- May not need a definition of normal retirement age, (Ch1B/Def-NormalRetirementAge/PtD), (Ch6/SecIV/PtC.1.b.5)a))

- Safe harbors for in-service distributions after NRA, (Ch6/SecIV/PtC.1.b.4)a))

* Invalidation of service-based NRA definition, (Ch1B/Def-NormalRetirementAge/PtC)

- Congressional relief, 

* Normal retirement date, see ACCRUAL OF BENEFITS (Defined benefit plans), DISTRIBUTIONS

* Participation commencement date to apply 5th anniversary rule, (Ch1B/Def-NormalRetirementAge/PtA)

* Pension plans

- No reliance on opinion letter or advisory letter if NRA is lower than age 62, (Ch1B/Def-PreApprovedPlan/PtF.4.)

- Reasonable normal retirement age requirement, (Ch6/SecIV/PtC.1.b.)

* Plan-defined NRA need not comply with ERISA-defined NRA, (Ch1B/Def-NormalRetirementAge/PtB)

* Postponement of distribution to NRA, see DISTRIBUTIONS

* Service-based definition of NRA, (Ch1B/Def-NormalRetirementAge/PtC)

* Significance of a plan's definition of NRA, (Ch1B/Def-NormalRetirementAge/PtE)

* Social security retirement age, see (Ch16/SecII/PtH.6.b.)

* Uniform normal retirement age, see (Ch3A/SecIII/PtA.1.c.)

* Vesting at NRA, see VESTING RULES

NORMAL RETIREMENT DATE, see ACCRUAL OF BENEFITS(Defined benefit plans), DISTRIBUTIONS, NONDISCRIMINATION TESTING

NORMALIZING THE BENEFIT, (Ch3A/SecIII/PtA.1.c.)

NOTICE REQUIREMENTS RELATING TO PLAN DISTRIBUTIONS, see DISTRIBUTIONS

NOTIFICATION LETTER, see APPROVAL PROCESS