Non-Discrimination Testing Services

In order to retain tax-favored status, the IRS Code requires that section 125, 105(h) and 129 plans pass a
series of non-discrimination testing each year. In order to document compliance annual testing must
be performed and the results documented. The results are subject to audit by the IRS.

Benefit Strategies is pleased to offer non-discrimination testing to assist in the administration of your
plans. Both a questionnaire and a census must be completed for non-discrimination testing to occur. Once your completed questionnaire and census have been submitted, we will conduct the following tests and inform you in writing of the results so that you will have the information on file if audited by the IRS:
• Eligibility Test
• Contributions & Benefits Test (also called the Utilization Test)
• Key Employee Concentration Test
• 55% Average Benefit Test (Dependent Care Test)

Premium Conversion Plans (POP) & Wrap Documents

A Section 125 Premium Conversion Plan (POP) allows employees to pay their eligible group insurance premiums on a pre-tax basis.

A Wrap Document "wraps around" existing insurance policy language to satisfy the Summary Plan Description (SPD) compliance requirements of ERISA. Summaries of Benefits and Coverage (SBCs) and Certificates of Coverage (COC) generally issued by insurance carriers are not the same as ERISA-compliant SPDs. A plan administrator can consolidate all health and welfare plans under a single Wrap document to comply with ERISA SPD language requirements

Benefit Strategies is pleased to offer POP and Wrap document services to assist with compliance of your Section 125 plans. In partnering with Benefit Strategies for Document services, you can expect:
• Written Plan Documents & Amendments
• Adoption Agreements
• Summary Plan Descriptions