NEW COMPARABILITY PLAN
01.Core Concepts
• Contributions are based on employee classification. Designed to skew benefits toward owner classification. • IRC states that “either contri butions or benefits must not be discriminatory…” • Plan must generally pass one of two minimum allocation gateways: • Non-highly compensated employee (NHCE) allocation rate is at least 1/3 of the highly compensated employee (HCE) with the highest allocation rate, or • Each non-highly compensated employee receives an allocation of at least 5%.