Nondiscrimination Testing | Meaning & Definition | Akrivia HCM

Nondiscrimination testing is the practice of requiring employee contributions to the plan to be at a certain level. Without non-discrimination testing, high earners could contribute too much to their retirement account, shifting other employees’ 401(k) balances too low. Tests for this are multi-faceted, and compliance with them can be costly and time-consuming.

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