Ensuring Fair Benefits: Non-Discriminative Testing for All Employees

To maintain tax-favored status, benefit plans must adhere to non-discriminatory practices, ensuring fairness across all employee levels. Federal regulations outline specific requirements for benefit plans governed by IRC Section 125, IRC Section 105, and IRC Section 129, necessitating annual tests to validate compliance. The results of these tests must be documented for each plan and are subject to review by the IRS to ensure adherence to non-discrimination standards.