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ERISA Outline Book Index







* 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.),  (Ch9/SecX/PtQ.1)

- 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 or 72: 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)


* 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 or 72, 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.)










* 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)


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


* 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/.)




* 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