Form 5300 - Instruction 5300 Schedule Q 2010 - Department Of The Treasury Page 4
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6is imputed in determining employee
preretirement survivor annuity charges
2. Identify each rate group under
benefit percentages.
as provided in Regulations section
the plan and include a demonstration of
1.401(a)(4)-3(f)(8).
how each rate group satisfies section
6. An explanation of how allocation
16. Plans with employee
410(b). If the plan is a DBP that is
or accrual rates are grouped on the
contributions not allocated to separate
being tested on the basis of the amount
test.
accounts must give a description of the
of benefits, rate groups must be
7. A description of how contributions
method for determining the
determined on the basis of both normal
or benefits are normalized on the test,
employer-provided accrued benefit
and most valuable accrual rates which
including the actuarial assumptions
under Regulations section
are expressed as a dollar amount or a
used.
1.401(a)(4)-6(b) and the location of
percentage of compensation. If the
8. The definition of section 414(s)
relevant plan provisions. If the method
most valuable accrual rate is
compensation used in determining plan
for determining the employer-provided
determined in accordance with the
year compensation or average annual
accrued benefit is the composition-of-
special rule in Regulations section
compensation and a demonstration
workforce method, the demonstration
1.401(a)(4)-3(d)(3)(iv) (floor on most
showing the definition as
must show that the eligibility
valuable accrual rate), this must be
nondiscriminatory. If plan year
requirements of Regulations section
indicated.
compensation or average annual
1.401(a)(4)-6(b)(2)(ii) are satisfied. If
3. State whether the plan is being
compensation is determined using a
the grandfather rule of Regulations
tested on a contributions or benefits
definition of compensation that satisfies
section 1.401(a)(4)-6(b)(4) is used, the
basis.
Regulations sections 1.414(s)-1(c)(2) or
demonstration must show, if applicable,
4. Provide the plan year being
(3), the explanation should state
that the benefits provided on account of
tested.
whether the definition satisfies
employee contributions at lower levels
Regulations sections 1.414(s)-1(c)(2) or
5. Provide a description of the
of compensation are comparable to
(3). See the instructions under Demo 9
method of determining allocation or
those provided on account of employee
on page 6 pertaining to
accrual rates, and if the plan is tested
contributions at higher levels of
nondiscriminatory compensation.
on a benefits basis, the measurement
compensation.
period and definition of testing service
9. A description of the method of
Employee Benefit Percentages
(including imputed and pre-participation
determining compensation used in
Determined Using Cross-Testing
service).
determining employee benefit
17. Provide a description of the
percentages.
6. State whether the test is imputing
method used to determine equivalent
permitted disparity under Regulations
10. The testing age of employees
allocations and benefits on the test.
section 1.401(a)(4)-7.
(not applicable to defined contribution
plans (DCPs) testing on a contribution
7. Provide an explanation of how
Demo 6 – General Test
basis).
allocation or accrual rates are grouped.
8. Provide an explanation of how
Plans with Defined Benefit Plans
Demo 6 covers a request for a
benefits are normalized on the test,
in the Testing Group
determination that a plan satisfies a
including the actuarial assumptions
general test under any of the following
Plans with DBPs in the testing group
used (not applicable to DCPs testing on
Regulations sections:
must also provide the following
•
a contributions basis).
1.401(a)(4)-2(c),
information if applicable.
•
9. State the definition of section
1.401(a)(4)-3(c),
11. Show if accruals after normal
•
414(s) compensation used in
1.401(a)(4)-8(b),
retirement age are taken into account
•
determining plan year compensation or
1.401(a)(4)-8(c),
and, if such accruals are disregarded
•
average annual compensation and
1.401(a)(4)-8(c)(3)(iii)(C), or
as provided in Regulations section
•
include a demonstration showing the
1.401(a)(4)-9(b).
1.401(a)(4)-3(f)(3), the basis on which
definition as nondiscriminatory. If plan
Demo 6 must include a
they are disregarded.
year compensation or average annual
nondiscrimination test showing that the
12. Show if most valuable rates must
compensation is determined using a
plan passes the relevant general test
be used under Regulations section
definition of compensation that satisfies
and provide the information listed below
1.410(b)-5(d)(7), and, if so, show how
Regulations sections 1.414(s)-1(c)(2) or
All Plans (Unless Otherwise Noted),
those rates are determined.
(3), state whether the definition satisfies
and if applicable, under Defined Benefit
13. Show if a DBP disregards offsets
Regulations section 1.414(s)-1(c)(2) or
Plans Only, Aggregated Defined Benefit
described in Regulations section
(3). See the Demo 9 instructions
and Defined Contribution Plans Only, or
1.401(a)(4)-3(f)(9), give a description of
pertaining to nondiscriminatory
Cross-Tested Plans Only. However, the
such offsets, and show how they satisfy
compensation for guidance.
IRS may request that additional
Regulations section 1.401(a)(4)-3(f)(9).
10. Provide the method of
information be submitted if necessary.
14. Show if any disability benefits are
determining average annual
taken into account in determining
All Plans (Unless Otherwise
compensation used in testing the plan
employees’ accrued benefits under
Noted)
for nondiscrimination as defined in
Regulations section 1.401(a)(4)-3(f)(2),
Regulations section 1.401(a)(4)-3(e)(2)
All plans must submit the information
and, if so, cite the plan provisions that
or give a description of the period used
requested in items 1 through 11 below.
permit these disability benefits to be
in determining plan year compensation.
taken into account.
1. Provide the portion of the
11. Provide the testing age of
15. Show if any other special rules in
nondiscrimination test that provides the
employees, include fractions of year if
testing a plan for nondiscrimination in
data for each participant and
the test is based on fractional age (not
amounts are applied, for example, the
demonstrates that the plan satisfies
applicable to a DCP testing on a
rules applicable to the determination of
401(a)(4). Participants need not be
contributions basis).
benefits on other than a plan-year basis
identified by name. Tests that include
Defined Benefit Plans Only
described in Regulations section
two or more component plans (such as
All DBPs must also provide the
1.401(a)(4)-3(f)(6), the adjustments for
profit sharing, money purchase, 401(k)
following information, if applicable.
certain plan distributions provided in
and 401(m)) should separately show
Regulations section 1.401(a)(4)-3(f)(7),
the allocations or benefits under each
12. State whether accruals after
and the adjustment for certain qualified
component plan.
normal retirement age are taken into
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