COVID-19 Impact on Retirement Plan Discrimination Testing
As a result of COVID-19, many employers have made financial, operational, and employment-related changes. Plan sponsors need to consider how the following actions may impact the results of their 2020 retirement plan discrimination testing:
- Changing or Discontinuing the employer 401K match
- Retirement plan design changes
- Furloughing, laying off, or termination of employees
- Employee deferral changes, including the discontinuation of deferrals
If your organization has taken any of these actions or notice a change in participant behavior, we suggest you take a proactive approach to understand the impact on your non-discrimination testing.
It is important to get a better understanding NOW of how any of these changes may negatively impact your retirement plan as corrective actions may be available prior to your plan year end.
If would like a complimentary Retirement Plan Impact Analysis, please click here.
