Which of the following plans automatically satisfies the nondiscrimination tests by mandating an employer contribution?

Question

Quizplus · Accepted Answer

Safe Harbor Section (401(k) plan) automatically satisfies the nondiscrimination tests by requiring the employer to make contributions to the plan on behalf of employees. This ensures that the plan doesn't discriminate in favor of highly compensated employees and meets the requirements of the IRS. The other options listed do not automatically satisfy the nondiscrimination tests and may require additional testing to ensure compliance.

Which of the Following Plans Automatically Satisfies the Nondiscrimination Tests