Nondiscrimination Testing

Nondiscrimination testing (NDT) is a set of tests created by the IRS to determine if a company's benefits are fair for all eligible employees.

Code §125 regulations require that nondiscrimination testing be done on the last day of the plan year. Many employers test a month prior to make any necessary adjustments and then should retest again on the last day of the plan year. Make any adjustments prior to the end of the taxable year as well.
Many employers test a month prior to make any necessary adjustments and then should retest again on the last day of the plan year. Make any adjustments prior to the end of the taxable year as well.
Health FSAs, Dependent Care FSAs, Self-Insured Plans and plans that allow pre-tax salary reductions must all complete applicable testing at least annually.