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410(b) Testing

Also known as: 410(b) Coverage Testing
Published on 2024-09-07 | Last edited on 2024-09-08
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Definition

410(b) coverage testing is a type of compliance test certain qualified retirement plans (e.g., ESOPs) must undergo each year to ensure their plan doesn’t overly favor highly compensated employees (HCEs) over non-highly compensated employees (NHCEs) when it comes to who is eligible to participate in the plan.

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