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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
CARES ACT (CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT)
* See reference chart, (Ch15/SecIX/PtW)
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)
* 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))
* Roth contributions; catch-up contributions must be Roth (SECURE 2.0), (Ch11/SecVI/PtC.1.h.1))
* 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
- 2021 plan years, (Ch11/AppC.¶1.)
* 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
CLOSED DB PLAN RELIEF
* SECURE Act nondiscrimination and IRC §401(a)(26) relief, (Ch9/SecXI/PtQ)
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)
* 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
CONSOLIDATED APPROPRIATIONS ACT, 2021 (CCA 2021)
* Summary of provisions, (Ch15/SecIX/PtY)
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.)
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
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
CURRENT AVAILABILITY OF BENEFITS, RIGHTS AND FEATURES, (Ch9/SecX), see also NONDISCRIMINATION TESTING
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)