Transcription of chapter 10-coverage and nondiscrimination
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chapter 10- Coverage and nondiscrimination Page 10-1 Coverage and nondiscrimination chapter 10 Coverage and nondiscrimination Demo 6 By Terry Bates (Atlanta) And John Almquist (Pacific Coast) and Al Reich Reviewers INTERNAL REVENUE SERVICE TAX EXEMPT AND GOVERNMENT ENTITIES Introduction Purpose of chapter Coverage and nondiscrimination has been the subject of major CPE Chapters in 1997 ( chapter 1 Guide to Coverage and Discrimination Issues), 2002 ( chapter 7 Coverage and nondiscrimination with Emphasis on determinations processing) and 2003 ( chapter 1 nondiscrimination detailed review of demonstrations).
The benefit percentage, for each participant, is defined as the normal accrual rate or allocation rate determined under the 401(a)(4) regulations, and expressed as either a percent of annual average compensation or a dollar amount. For defined contribution plans, plan year compensation can be used. How Employee Benefit percentages are calculated
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