General Discussion

IRC-Defined Discrimination

Overview

In essence, the IRC requires that if (a) the Plan makes available a tax advantage (i.e., employer contributions being deductible and participant benefits being tax-exempt), then (b) both the eligibility and the benefits/terms/contributions of such Plan shall not be biased in favor of the highly compensated class.

Four separate IRC Sections are dedicated to establishing a wide range of discrimination rules: (a) 105(h)(medical reimbursement plans and health reimbursement accounts), (b) 125 (cafeteria plans which include the full-flex plan, the flexible spending account and the premium only plan),  (c) 79 (life insurance) and  (d) 410 (qualified deferred compensation plans such as pension, profit-sharing and 401(k) plans). The rules are not difficult to understand and apply but are so wide-ranging in definitions, details, etc. that they can be quite elusive.

It is the purpose of www.awpse.com is to offer numerous computer-prepared online risk/actuarial work-products that make the testing procedures as efficient, user-friendly, inexpensive, accurate and understandable as possible.  Separate work-products are offered separately for the safe harbor and the employee database required tests, as shown below:
          IRC Section 105(h) (MRP and HRA)
             Safe Harbor
             Employee Database Required
          IRC Section 125 (Full-Flex, FSA and POP)
             Safe Harbor
             Employee Database Required
          IRC 129 (DCAP)
             Safe Harbor
             Employee Database Required
          IRC 79 (Life Insurance)
               In process
          IRC 410 (Qualified Deferred Compensation Plans)
               In process

Items Useful to the User

Because of the plethora of term, concepts, rules, etc., an online Text titled Discrimination in Employee Benefits is available in both a printed and an audio version.

Each of the listed work-products has its own Sub-Site with Its own unique (a) data entry rules, (b) www.awpse.com protocol, (c) testing programs, (d) work-products and (e) instructions.

Other Discrimination Issues

Such issues include the following: (a) VEBA, (b) Health-Related, (c) Age-Related, (d) Trade and Commerce-Related and (e) PPACA.