The IRS states that 401k plans cannot favor highly compensated employees over lower paid workers.

Name: The IRS states that 401k plans cannot favor highly compensated employees over lower paid workers.
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The IRS mandates non-discrimination tests for 401(k) plans to ensure they do not disproportionately benefit highly compensated employees over those who are lower paid, promoting fairness and equality in retirement savings opportunities.

The IRS States That 401k Plans Cannot Favor Highly Compensated