Tests Flashcards
1
Q
Ratio Test
A
% of HC covered
= Greater or Equal to 70%
2
Q
50/40 Test
A
-Must pass each year
-Does not differentiate between HC/NHC
-Lesser of 50% or 40 employees.
1 = 1
2-4 = 2
<125 = 40
>125 = 50
3
Q
General Safe Harbor Test
A
% of NHC (> or = ) to 70%
4
Q
ADP Test
A
Average HC Contribution
Must be below ?
