Nondiscrimination and coverage testing is required by all plans. It is important to properly identify eligible plan participants per the definitions and follow the proper testing method contained within the plan document.
For a failed nondiscrimination test, the IRS imposes deadlines to timely make the corrections. By assigning PACE as your designated plan administrator, we will ensure these deadlines are met.
Failure to timely process refunds for a failed ADP nondiscrimination test by April 15th results in a 10% excise penalty on the total required refund.
Nondiscrimination & Coverage Services
- Review and authorize deferral refunds
- Review and authorize forfeiture or distribution of excess contributions
- Notify Plan Sponsor of possible solutions for failed testing