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Nondiscrimination tests on a cafeteria plan are a series of tests that are required by the Internal Revenue Service (IRS) to determine if a cafeteria plan that includes benefits like a health care …
c) Cafeteria Plan NDT: Key Employees. Individuals are considered highly compensated as a Key Employee for purposes of the Key Employee Concentration Test if they …
Non-calendar year plans may report using either (1) gross annual compensation during the prior plan year or (2) gross annual compensation for the calendar year ending during the plan year.If …
Nondiscriminatory 25% Concentration Test. If a Section 125 cafeteria plan provides more than 25 percent of its nontaxable benefits (excluding group term life insurance …
Overview of Cafeteria Plan Nondiscrimination Testing. Section 125 of the Internal Revenue Code provides an exception to the “constructive receipt” rule — without Section 125, …
DCAP Tests. If a DCAP is added, there are four additional tests: (1) an Eligibility Test; (2) a Contributions and Benefits Test; (3) a More-Than-5% Owners Concentration Test; …
Under a simple plan, eligible employees include those with 1,000 hours of service in the preceding plan year. Discrimination testing is simplified: ... Small employers might …
For 2020, the applicable compensation amount is $130,000 ($125,000 in 2019). Key employee is a participant who, at any time during the current plan year, is one of the …
The 2007 proposed cafeteria plan regulations address when discrimination testing must be performed, indicating that the cafeteria plan tests must be performed as of the last day of the …
Under this safe harbor, a premium-only plan is deemed to satisfy the cafeteria plan nondiscrimination requirements if it passes the eligibility test. In other words, the plan will …
Cafeteria plans are subject to a number of nondiscrimination tests to ensure that all employees receive proportional benefits. If certain prohibited groups of employees receive …
$8,000 salary reduction for the major medical plan. The cafeteria plan satisfies the safe harbor rule under the benefits and contributions test. KEY EMPLOYEE CONCENTRATION TEST Under …
Key Employee Concentration Test The IRS requires employers who sponsor a Cafeteria Plan (sometimes called a Section 125 Plan or Premiumonly-Plan) to conduct certain …
Section 125 testing must be performed on self-insured benefit programs that are paid on a pre-tax basis as a component of the cafeteria plan. This test is often performed after these programs …
CAFETERIA PLAN (Including Flexible Spending Accounts) Plan Non-Discrimination Testing Questionnaire It’s time to complete your annual Plan Non-Discrimination Testing …
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TrainUp.com is your one-stop source for finding cafeteria plan training courses in Fort Worth, Texas. TrainUp.com currently lists cafeteria plan training courses in and nearby the Fort Worth …
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