Non-Discrimination Testing (NDT)

Whether an employer has a full Cafeteria Plan, Flexible Spending Account (FSA)
or a Premium Only Plan (POP), the Internal Revenue Service (IRS) requires annual Non-Discrimination Testing (NDT) at the end of each plan year. FlexNDT™ offers a complete compliance testing curriculum for each type of plan:

What Types of Section 125 Non-Discrimination Testing are Available?

Cafeteria Plan Testing

  • 25% Key Employee Concentration Test – Ensures of all the pre-tax dollars being spent through the Cafeteria Plan, no more than 25% is being spent by Key Employees
  • Eligibility Test - Ensures enough non-highly compensated employees are eligible to participate in the Cafeteria Plan

FSA Health Care Testing

  • Eligibility Test – Ensures that enough non-highly compensated employees are benefiting from the plan

FSA Dependent Care Testing

  • Eligibility Test – Ensure enough non-highly compensated employees are eligible to participate in the Dependent Care plan
  • 55% Average Benefits Test - Ensures that, on average, highly compensated employee elections are in proportion to non-highly compensated employee elections
  • 5% Owners Test – Ensures that any participants who own more than 5% of the shares of the employer are not disproportionably benefiting from the plan

Contact your experts at Flex today for more information on selling FlexNDT section 125 non-discrimination testing.