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Employee Benefits > Cross-Tested Plans

The following information is about Cross-Tested Plans.

Cross-Tested Plans Defined

A defined contribution plan, whether a profit sharing or money purchase, which calculates its benefits based upon age and retirement assumptions to allocate benefits in a nondiscriminatory fashion as permitted in the nondiscrimination regulations under Code section 401(a)(4). (Also referred to as benefit based plans, tiered plans and general testing plans.)

This definition is in context to Employee Benefits. See more contextual defintions for Cross-Tested Plans.


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