Section 125 Premium Only Plan Non-discrimination Testing and Analysis

Section 125 Premium Only Plan Non-discrimination Testing and Analysis

$415.00 price + options
 
In order to qualify for tax-favored status, an Internal Revenue Code (IRC) Section 125 Premium Only Plan must be non-discriminatory.

ComplianceBug's non-discrimination testing and analysis services allows you to upload your plan data to test for compliance with IRC Section 125.

Plans must not discriminate in favor of highly compensated employees and key employees with respect to eligibility, contributions, and benefits. In order to meet these compliance requirements, an annual test must be performed and the results documented for the Premium Only Plan. The results are subject to audit by the IRS.

There are three distinct aspects of ComplianceBug's Premium Only Plan non-discrimination testing:

  • Eligibility test - This test looks at who is asked to participate in the plan. In order to pass this test, the company must ensure that a reasonable number of non-HCEs are eligible to participate in the plan.
  • Contributions and benefits test - This test requires that all employees should receive the same amount of employer contributions and the same benefits must be available to all employees.
  • Key Employee Test - This test requires that HCEs/Key employees do not actually take (or utilize) a disproportionate amount of benefits under the plan.

Fees include a $415.00 per test setup fee plus a per participant fee.

To calculate your testing and analysis fees, select the total number of employees to be tested. Testing is being performed for the current plan year. Employee data is required if an employee is considered “non-excludable”.

DISCOUNTS AVAILABLE - ASK YOUR BROKER/CONSULTANT IF THEY ARE A COMPLIANCEBUG PARTNER.