Department of Finance

 

Date of this Version

1995

Document Type

Article

Citation

Journal of Actuarial Practice 3 (1995), pp. 129-137

Comments

Copyright 1995 Absalom Press

Abstract

Cross-tested plans are defined contribution plans that test allocations for nondiscrimination. The test is based on a plan's actuarial equivalent annuity benefits. Cross-tested plans have become popular among small plan sponsors after the release of the nondiscrimination regulations. This paper investigates the pros and cons of cross-testing.

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