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10. The testing age of employees (not

Employee Benefit Percentages

8. Provide an explanation of how

applicable to defined contribution plans

benefits are normalized on the test,

Determined Using

testing on a contribution basis).

including the actuarial assumptions

Cross-Testing

used (not applicable to defined

17. Provide a description of the method

contribution plans testing on a

Plans with Defined Benefits

used to determine equivalent

contributions basis).

Plans in the Testing Group

allocations and benefits on the test.

9. State the definition of section 414(s)

Plans with DBPs in the testing group

compensation used in determining plan

must also provide the following

Demo 6 - General Test

year compensation or average annual

information, if applicable.

A determination that a plan satisfies

compensation and a demonstration

any of the general tests in Regulations

showing the definition as

11. Show if accruals after normal

sections 1.401(a)(4)-2(c),

nondiscriminatory. If plan year

retirement age are taken into account

1.401(a)(4)-3(c), 1.401(a)(4)-8(b)(2),

compensation or average annual

and, if such accruals are disregarded

1.401(a)(4)-8(c)(2),

compensation is determined using a

as provided in Regulations section

1.401(a)(4)-8(c)(3)(iii)(C), and

definition of compensation that satisfies

1.401(a)(4)-3(f)(3), the basis on which

1.401(a)(4)-9(b) must include a

Regulations section 1.414(s)-1(c)(2) or

they are disregarded.

nondiscrimination test showing that the

(3), state whether the definition satisfies

plan passes the relevant general test,

12. Show if most valuable rates must

Regulations section 1.414(s)-1(c)(2) or

and provide the information listed under

be used under Regulations section

(3). See the guidelines for Demo 9,

All Plans (unless otherwise noted) and,

1.410(b)-5(d)(7), and, if so, show how

nondiscriminatory compensation, in the

if applicable, under DBPs Only or

those rates are determined.

Instructions for Schedule Q (Form

Cross-Tested Plans Only. However, the

5300) for guidance pertaining to this

13. Show if a defined benefit plan

IRS may request that additional

demonstration.

disregards offsets described in

information be submitted if necessary.

10. Provide the method of determining

Regulations section 1.401(a)(4)-3(f)(9),

All Plans (unless otherwise

average annual compensation used in

give a description of such offsets, and

noted)

testing the plan for nondiscrimination as

show how they satisfy Regulations

defined in Regulations section

All plans must submit the information

section 1.401(a)(4)-3(f)(9).

1.401(a)(4)-3(e)(2) or give a description

requested in items 1 through 11.

of the period used in determining plan

14. Show if any disability benefits are

1. Provide the portion of the

year compensation.

taken into account in determining

nondiscrimination test that provides the

employees’ accrued benefits under

11. Provide the testing age of

data for each participant and

Regulations section 1.401(a)(9)-3(f)(2),

employees, include fractions of year if

demonstrates that the plan satisfies

and, if so, cite the plan provisions that

test is based on fractional age (not

section 401(a)(4). Participants need not

permit these disability benefits to be

applicable to DCPs testing on a

be identified by name. Tests that

taken into account.

contributions basis).

include two or more component plans

(such as profit sharing, money

Defined Benefit Plans Only

15. Show if any other special rules in

purchase, sections 401(k) and 401(m))

testing a plan for nondiscrimination in

All DBPs must also provide the

should show the allocations or benefits

amounts are applied, for example, the

following information if applicable.

under each component plan.

rules applicable to the determination of

12. State whether accruals after normal

2. Identify each rate group under the

benefits on other than a plan-year basis

retirement age are taken into account,

plan and include a demonstration of

described in Regulations section

and if such accruals are disregarded as

how each rate group satisfies section

1.401(a)(4)-3(f)(6), the adjustments for

provided in Regulations section

410(b). If the plan is a DBP that is

certain plan distributions provided in

1.401(a)(4)-3(f)(3), provide the basis on

being tested on the basis of the amount

Regulations section 1.401(a)(4)-3(f)(7),

which they are disregarded.

of benefits, rate groups must be

and the adjustment for certain qualified

determined on the basis of both normal

13. State whether early retirement

preretirement survivor annuity charges

and most valuable accrual rates which

window benefits are taken into account

as provided in Regulations section

are expressed as a dollar amount or a

in determining accrual rates and

1.401(a)(4)-3(f)(8).

percentage of compensation. If the

whether such benefits are being

most valuable accrual rate is

16. For plans with employee

disregarded under Regulations section

determined in accordance with the

contributions not allocated to separate

1.401(a)(4)-3(f)(4)(ii). Also provide the

special rule in Regulations section

accounts, give a description of the

basis on which they are disregarded.

1.401(a)(4)-3(d)(3)(iv) (floor on most

method for determining the

14. State whether any unpredictable

valuable accrual rate), this must be

employer-provided accrued benefit

contingent event benefits were taken

indicated.

under Regulations section

into account in determining accrual

1.401(a)(4)-6(b) and the location of

3. State whether the plan is being

rates under Regulations section

relevant plan provisions. If the method

tested on a contributions or benefits

1.401(a)(4)-3(f)(5) and provide the

for determining the employer-provided

basis.

basis on which they are taken into

accrued benefit is the

4. Provide the plan year being tested.

account.

composition-of-workforce method, the

5. Provide a description of the method

15. State whether the plan disregards

demonstration must show that the

of determining allocation or accrual

offsets described in Regulations section

eligibility requirements of Regulations

rates, and if the plan is tested on a

1.401(a)(4)-3(f)(9), provide a

section 1.401(a)(4)-6(b)(2)(ii) are

benefits basis, the measurement period

description of such offsets, and show

satisfied; if the grandfather rule of

and definition of testing service

how they satisfy Regulations section

Regulations section 1.401(a)(4)-6(b)(4)

(including imputed and pre-participation

1.401(a)(4)-3(f)(9).

is used, the demonstration must show,

service).

if applicable, that the benefits provided

16. State whether any disability

6. State whether the test is imputing

on account of employee contributions at

benefits are taken into account in

permitted disparity under Regulations

lower levels of compensation are

determining employees’ accrued

section 1.401(a)(4)-7.

comparable to those provided on

benefits under Regulations section

account of employee contributions at

7. Provide an explanation of how

1.401(a)(4)-3(f)(2), and if so, cite the

higher levels of compensation.

allocation or accrual rates are grouped.

plan provisions that permit these

-7-

Instructions For Form 5310 - Application For Determination For Terminating Plan - Department Of Treasury Page 7

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