Nondiscrimination Tests Clause Samples
The Nondiscrimination Tests clause ensures that certain benefits, such as those provided by employee benefit plans, are offered in a manner that does not favor highly compensated employees or specific groups over others. In practice, this clause requires the plan administrator to regularly evaluate the plan using IRS-prescribed tests to confirm that eligibility, contributions, and benefits are distributed fairly among all eligible employees. Its core function is to maintain compliance with tax laws and prevent the loss of favorable tax treatment by ensuring equitable access to benefits and avoiding discriminatory practices.
Nondiscrimination Tests. The ADP and ACP tests described in Section 3.07 are treated as satisfied for any Year for which this section applies.
Nondiscrimination Tests. The Plan is treated as meeting the requirements of Code §401(k)(3)(A)(ii) and §401(m)(2) for any Year for which the provisions of this Section are effective and satisfied.
Nondiscrimination Tests. The ADP and ACP tests described in Sections 2.7.1 and 2.7.3 of the Plan are treated as satisfied for any Year for which this Article applies.
Nondiscrimination Tests. The Plan is treated as meeting the requirements of Code Sections 401(k)(3)(A)(ii) and 401(m)(2) for any "year" for which the provisions of this Article are effective and satisfied. Accordingly, Sections 11.4, 11.5, 11.6 and 11.7 shall not apply to the Plan.
Nondiscrimination Tests. In no event may amounts taken into account for the purpose of satisfying the Actual Deferral Percentage Test, the Actual Contribution Percentage Test, or the Alternative Limitation Test be used for the purpose of satisfying any other nondiscrimination test under Section 401 of the Code.