As anticipated by plan sponsors, the IRS has extended relief for plan years that begin before 2020, if certain conditions are met. Previously the IRS granted temporary relief to qualified retirement plans seeking to comply with the rules that require the plans do not discriminate in favor of highly compensated employees.
Plans must demonstrate compliance in one of three ways.
1. They can be primarily defined benefit in character
2. They can consist of broadly available separate plans
3. They can meet the minimum aggregate allocation gateway.
For more detail, reference Notice 2018-69 or contact us for help with this complex topic.
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