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Nonstandardized Safe Harbor Plan

Last Updated March 22, 2009


A Master&Prototype Plan that would be a standardized plan except that the plan:

  • Is not required, by its terms, to benefit all nonexcludable employees and may, in the case of a defined contribution plan, condition allocations on employment on the last day of the plan year and/or the completion of up to 1000 hours of service during the plan year;
  • May use certain alternative definitions of compensation [ as described in IRC § 414(s) ] determining contributions or benefits that must be tested for nondiscrimination
  • May provide past service credit that fails to meet the safe harbor for certain grants of benefits for past periods ( described in  § 1.401(a)(4)-5(a)(3)).

Referring Cite

Rev. Proc. 2005-16,

Additional Helpful Information

  • The opinion letter issued for the plan will state that the plan is a nonstandardized safe harbor plan.