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February 16, 2009

Minimum Participation Test

Your Guide



A test that must be performed for defined benefit plans , to ensure that the plan benefits at least the lesser of —

  • 50 employees of the employer, or the greater of —
    • 40 percent of all employees of the employer, or
    • 2 employees (or if there is only 1 employee, such employee).
  • Does not apply to defined contribution plans

Referring Cite

IRC § 401(a)(26), Treas. Reg. §1.401(a)(26)-7(a)

Additional Helpful Information

The plan must satisfy the test on each day of the plan year

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.


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