A test that must be performed for qualified plans and 403(b)s to ensure the plan meets one of the following requirements:
- The plan benefits at least 70 percent of employees who are not highly compensated employees.
- The plan benefits:
- a percentage of employees who are not highly compensated employees which is at least 70 percent of
- the percentage of highly compensated employees benefiting under the plan.
- The plan satisfies the average benefits test
IRC § 410(b), Prop Treas Reg §1.410(b)-6(g)