Archive by tag: Nondiscrimination TestingReturn
For purposes of the cafeteria plan nondiscrimination testing, the employer will use gross annual compensation which includes all taxable wages the employee receives from the employer, adds back any pre‐tax benefits the employee elects, as well as adds any taxable benefits the employee receives.
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Categories: Benefits in General, Compliance, Health Care in General | Tags: Cafeteria Plan , Nondiscrimination Testing , HCFSA , DCFSA , Flexible Spending Account , FSA , IRS , Annual compensation , Gross Compensation , W-2
The IRS requires that any organization that offers a cafeteria plan (or in other words, a pre-tax benefit plan) must perform various tests on the plan annually at the end of each plan year to determine if the plan is nondiscriminatory. In other words the plan cannot favor highly compensated employees.
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Categories: Benefits in General, Compliance | Tags: IRS , Nondiscrimination Testing , Key Employees , Highly Compensated Employees , Non-Highly Compensated Employees , FSA , Premium , Cafeteria Plan

IRS Announces 2017 Pension Plan Limitations

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Today the IRS issued Notice 2016-62 announcing the cost of living adjustments for pension plans and other retirement-related items for the tax year 2017.
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Categories: Benefits in General, Compliance | Tags: Highly Compensated , Key Employee , Nondiscrimination Testing , IRS , 401K , Retirement
Generally, once an election is made and the plan year has begun, a permitted election change event must occur to allow a participant to change or revoke the election
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Categories: Benefits in General | Tags: Election Changes , Nondiscrimination Testing
While it's no big secret that as your plan year ends, nondiscrimination testing must be completed. The mystery begins as you try to assimilate the rules and regulations required to successfully complete the Nondiscrimination Testing Worksheet.
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Categories: Compliance | Tags: Nondiscrimination Testing