We assisted an entity in which the 401(k) plan failed non-discrimination testing following several corporate transactions. The plan’s record keeper advised that the companies did not meet the qualified separate lines of business (QSLOB) requirements, and several thousands of dollars in corrective contributions was the only solution.
We quickly developed a way to fit within the QSLOB requirements in a completely different manner than the record keeper had suggested. The plan passed its non-discrimination tests, and the companies did not have to make any corrective contributions.
We quickly developed a way to fit within the QSLOB requirements in a completely different manner than the record keeper had suggested. The plan passed its non-discrimination tests, and the companies did not have to make any corrective contributions.
