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401(k) Testing Facts

Every year, the Employee Retirement Income Security Act (ERISA) requires employers to undergo 401(k) discrimination testing to ensure plans are not discriminating against lower income employees. This testing is usually performed by a third-party administrator, but employers should still understand the basics of how testing works. This article will help you understand the types of tests performed and what to expect. This article will help you understand the types of tests performed and what to expect.