Plan Services
"Cross Testing" Defined Contribution Plan
'Cross testing' rules permit a defined contribution plan to be considered nondiscriminatory on the basis of the benefits that will be provided, rather than how employer contributions are allocated. These types of plan allocations are skewed to favor a certain group of employees. The allocation method for these plans will vary from year to year dependent upon the level of contribution and the census data. There are several factors which will take part in calculations for favoring the elected group. The plans are subject to complicated non-discrimination testing of Code Section 401(a)(4) and are generally more costly to the employer.
This plan will allow the highly compensated employees a greater benefit. Please contact Employee Incentive Plans, Inc (EIP) if you would like to discuss these methods in detail.
Securities offered through Securities America, Inc., member FINRA / SIPC. Advisory Services offered through Rice Investment Advisory Services, Inc. Bruce A. Rice, Representative and Anderson Financial, Inc. Erik J. Anderson, Representative. Rice Investment Advisory Services, Inc., Anderson Financial, Inc., Employee Incentive Plans, Inc., and Securities America, Inc. are separate entities and are not affiliated with any other entity named on this site.
The Investment Fiduciary standard of care applies to advisory services only.
Tax and Plan Administration services provided by Employee Incentive Plans, Inc.
Advisory Licensed in TX | Insurance licensed in FL, TX
Securities Licensed in AK, AL, AZ, CA, CO, DE, FL, GA, HI, IL, KS, KY, LA, MA, MD, MI, MT, NC, NJ, NM, NV, NY, OK, OR,
SC, TX, UT, VA, WA, WI
This is not a CPA firm
Web Design and Development by Incorporating Design, LLC.