Form 5300 - Instruction 5300 Schedule Q 2010 - Department Of The Treasury Page 5

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account, and if such accruals are
If the grandfather rule of Regulations
compensation using a definition of
disregarded as provided in Regulations
section 1.401(a)(4)-6(b)(4) is used, the
compensation that satisfies Regulations
section 1.401(a)(4)-3(f)(3), provide the
demonstration must show, if applicable,
section 1.414(s)-1(c)(2) or (3), state
basis on which they are disregarded.
that the benefits provided on account of
whether the definition satisfies
employee contributions at lower levels
Regulations section 1.414(s)-1(c)(2) or
13. State whether early retirement
of compensation are comparable to
(3).
window benefits are taken into account
those provided on account of employee
in determining accrual rates and
See the instructions for Demo 9,
contributions at higher levels of
whether such benefits are being
later, pertaining to nondiscriminatory
compensation.
disregarded under Regulations section
compensation for guidance.
19. If the plan would otherwise fail to
1.401(a)(4)-3(f)(4)(ii). Also provide the
3. Provide the portion of the
satisfy the general test in Regulations
basis on which they are disregarded.
nondiscrimination test that provides the
section 1.401(a)(4)-3(c)(1), and a
14. State whether any unpredictable
data for each participant and
determination is being sought that the
contingent event benefits were taken
demonstrates that the plan satisfies
failure may be disregarded as permitted
into account in determining accrual
section 401(a)(4). The data must
by the special rule in Regulations
rates under Regulations section
include the units for each participant
section 1.401(a)(4)-3(c)(3), describe the
1.401(a)(4)-3(f)(5) and provide the
being tested and the underlying basis
relevant facts and circumstances that
basis on which they are taken into
for the units such as age, years of
support the use of this rule.
account.
service, or compensation. Show the
Aggregated Defined Benefit and
15. State whether the plan disregards
allocation rate for each eligible
Defined Contribution Plans Only
offsets described in Regulations section
participant. Show the average of the
20. If a DBP is aggregated with a
1.401(a)(4)-3(f)(9), provide a
allocation rates (determined without
DCP, provide a description of the
description of such offsets, and show
imputing permitted disparity) for the
special testing rules outlined in
how they satisfy Regulations section
HCEs and NHCEs benefiting under the
Regulations section 1.401(a)(4)-9(b).
1.401(a)(4)-3(f)(9).
plan.
The description should provide:
16. State whether any disability
Which test is being satisfied and
benefits are taken into account in
Demo 6 – Alternative Safe
supporting demonstrations of
determining employees’ accrued
Harbor for Flat Benefit Plans
satisfaction,
benefits under Regulations section
If using the minimum amount test,
1.401(a)(4)-3(f)(2), and if so, cite the
Each demonstration of the alternative
provide the DB and DC information and
plan provisions that permit these
safe harbor for flat benefit plans in
rates separately, and
disability benefits to be taken into
Regulations section
State whether the NHCE rates are
account.
1.401(a)(4)-3(b)(4)(i)(C)(3) must set
averaged or tested separately.
forth the average of the normal accrual
17. State whether any other special
Cross-Tested Plans Only
rates for all nonhighly compensated
rules in Regulations section
21. Provide a description of the
nonexcludable employees and the
1.401(a)(4)-3(f) are applied in testing a
gateway requirements of Regulations
average of the normal accrual rates for
plan for nondiscrimination in amount,
section 1.401(a)(4)-8. The description
all highly compensated nonexcludable
for example:
should provide:
employees. In addition, the
The rules applicable to the
Which test is being satisfied,
demonstration should provide the
determination of benefits on other than
If using the minimum amount test,
additional information described under
a plan-year basis described in
provide the DB and DC information and
Demo 6 – General Test, relating to the
Regulations section 1.401(a)(4)-3(f)(6),
rates separately, and
determination of normal accrual rates,
The adjustment for certain plan
except for the information described in
State whether the NHCE rates are
distributions provided in Regulations
paragraphs 1, 2, 6, 18, and 19.
averaged or tested separately.
section 1.401(a)(4)-3(f)(7), and
22. Provide a description of the
The adjustment for certain
Demo 7 – Test for
method used to determine equivalent
qualified preretirement survivor annuity
allocations and benefits.
Pre-participation or Imputed
charges as provided in Regulations
23. For DCPs, the demonstration
Service
section 1.401(a)(4)-3(f)(8).
must list each participant’s allocation
18. Plans with employee
If “Yes” is checked on line 7(i) or 7(ii),
rate for the plan being tested and list
contributions not allocated to separate
attach a demonstration that includes
the equivalent benefit accrual rate
accounts should include:
the following:
(including component plans) for each
A description of the method for
participant.
1. A description of the nature of the
determining whether
grant of past service or pre-participation
employee-provided accrued benefits
or imputed service,
Demo 6 – Safe Harbor for
are nondiscriminatory under
2. The location of the various plan
Uniform Points Plans
Regulations section 1.401(a)(4)-6(c),
provisions that provide for the granting
The method for determining the
Each demonstration of the safe harbor
of the service, and
employer-provided accrued benefit
for uniform points plans in Regulations
3. In the case of pre-participation or
under Regulations section
section 1.401(a)(4)-2(b)(3) should
imputed service, state if the service is
1.401(a)(4)-6(b), and
include the following information:
being taken into account in determining
The location of relevant plan
if the plan satisfies Regulations section
1. Provide a description of the
provisions.
1.401(a)(4)-1(b)(2).
plan’s allocation formula and the
If the method for determining the
location of relevant plan provisions.
Note. The information provided should
employer-provided accrued benefit is
2. State the definition of section
also include who receives the credit,
the composition-of-workforce method,
414(s) compensation used in
classification, and how many years are
the demonstration must show that the
determining plan year compensation
being credited. The information should
eligibility requirements of Regulations
and give a demonstration showing the
also provide which employees are
section 1.401(a)(4)-6(b)(2)(ii) are
definition as nondiscriminatory. If the
satisfied.
plan determines plan year
highly compensated and which are not.
-5-

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