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

February 16, 2009

Nonstandardized Safe Harbor Plan

Your Guide

Print

Definition

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.
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