As an employer, offering a retirement plan is a valuable benefit for your employees. However, ensuring that your plan complies with nondiscrimination testing (NDT) regulations is crucial to avoid any potential issues. The Internal Revenue Service (IRS) has established NDT regulations to ensure that qualified retirement plans do not discriminate in favor of highly compensated employees (HCEs). These regulations aim to promote financial equality in the workplace by preventing HCEs from contributing significantly more or utilizing benefits at a higher rate than non-highly compensated employees (NHCEs).
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