Bill Introduced In Congress would Prohibit Cross Testing

A bill, HR 4126, has been introduced in the House of Representatives which, among other things, would prohibit cross testing. The bil would require that defined contribution plans be tested solely on the basis of contributions and would further amend Section 401(a)(4) to require that discrimination be tested by comparing the contributions and benefits of highly compensated employees to only the vested contributions and benefits of nonhighly compensated participants. Acrrued benefits under a cash balance plan would be required to be treated as contributions, rather than benefits.

  Link: A copy of the bill can be retrieved by inserting HR 4126 in the search at www.thomas.gov

  

 

 

 

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