Save time with our cheat sheets, fact sheets, checklists & books!

February 16, 2009

Minimum Participation Test

Your Guide

Print

Definition

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

More

Keep Learning

Domestic abuse distribution

A domestic abuse distribution is one that is made to domestic abuse victim, during the 1-year period beginning on any date on which the individual

Eligible retirement plan

The term “eligible retirement plan”, means a retirement plan to which a rollover contribution can be made. These are: (i)an individual retirement account described in

Qualified See-Through Trust beneficiary

Definition A qualified trust beneficiary is a trust that satisfies the requirements so as to be treated as a designated beneficiary.   For retirement accounts inherited

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Be among the first to know when

IRA Rules
Change