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

February 16, 2009

Minimum Coverage Test



A test that must be performed for qualified plans and 403(b)s to ensure the plan meets one of the following requirements:

  • The plan benefits at least 70 percent of employees who are not highly compensated employees.
  • The plan benefits:
    • a percentage of employees who are not highly compensated employees which is at least 70 percent of
    • the percentage of highly compensated employees benefiting under the plan.
  • The plan satisfies the average benefits test

Referring Cite

IRC § 410(b), Prop Treas Reg §1.410(b)-6(g)

Additional Helpful Information


Keep Learning

Qualified Charitable Distribution (QCD)

Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches

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

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

Be among the first to know when

IRA Rules