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  • Writer's pictureSamantha Diggs

What is 401(k) Nondiscrimination Testing and Why is it Important?

Updated: Mar 10, 2022

401(k) contributions result in tax advantages. As such, it is important that the 401(k) plan benefits all employees, not just owners and executives. This is where nondiscrimination testing comes in. Whether you are starting a 401(k) plan and need to understand how testing works, or you are recovering from failing tests for an existing 401(k) plan, we understand how overwhelming it can be to sort through all of the details of nondiscrimination tests (NDTs).

The infographic below hits the highlights of NDTs. We encourage you to read it to gather an overview. If you have additional questions or concerns, we'd love to help. Reach out and let us know how we can help you.

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