Brief Case
Pension Resource

Treas. Reg. § 1.410(b)-8

Additional rules.
eCFR editorial change effective 2016-09-09 · current · last amended by T.D. 8363, 56 FR 47656, Sept. 19, 1991
PrintCompare datesAsk AI about this sectionOfficial source ↗
Back to current
The earliest stored text of this section is effective Apr 1, 1997. Showing that version.
(a) Testing methods
(1) In general. A plan must satisfy section 410(b) for a plan year using one of the testing options in paragraphs (a)(2) through (a)(4) of this section. Whichever testing option is used for the plan year must also be used for purposes of applying section 401(a)(4) to the plan for the plan year. The annual testing option in paragraph (a)(4) of this section must be used in applying section 410(b) to a section 401(k) plan or a section 401(m) plan, and in applying the average benefit percentage test of § 1.410(b)-5. For purposes of this paragraph (a), the plan provisions and other relevant facts as of the last day of the plan year regarding which employees benefit under the plan for the plan year are applied to the employees taken into account under the testing option used for the plan year. For this purpose, amendments retroactively correcting a plan in accordance with § 1.401(a)(4)-11(g) are taken into account as plan provisions in effect as of the last day of the plan year.
(2) Daily testing option. A plan satisfies section 410(b) for a plan year if it satisfies § 1.410(b)-2 on each day of the plan year, taking into account only those employees (or former employees) who are employees (or former employees) on that day.
(3) Quarterly testing option. A plan is deemed to satisfy section 410(b) for a plan year if the plan satisfies § 1.410(b)-2 on at least one day in each quarter of the plan year, taking into account for each of those days only those employees (or former employees) who are employees (or former employees) on that day. The preceding sentence does not apply if the plan's eligibility rules or benefit formula operate to cause the four quarterly testing days selected by the employer not to be reasonably representative of the coverage of the plan over the entire plan year.
(4) Annual testing option. A plan satisfies section 410(b) for a plan year if it satisfies § 1.410(b)-2 as of the last day of the plan year, taking into account all employees (or former employees) who were employees (or former employees) on any day during the plan year.
(5) Example. The following example illustrates this paragraph (a).
Example.

Plan A is a defined contribution plan that is not a section 401(k) plan or a section 401(m) plan, and that conditions allocations on an employee's employment on the last day of the plan year. Plan A is being tested for the 1995 calendar plan year using the daily testing option in paragraph (a)(2) of this section. In testing the plan for compliance with section 410(b) on March 11, 1995, Employee X is taken into account because he was an employee on that day and was not an excludable employee with respect to Plan A on that day. Employee X was a participant in Plan A on March 11, 1995, was employed on December 31, 1995, and received an allocation under Plan A for the 1995 plan year. Under these facts, Employee X is treated as benefiting under Plan A on March 11, 1995, even though Employee X had not satisfied all of the conditions for receiving an allocation on that day, because Employee X satisfied all of those conditions as of the last day of the plan year.

(b) Family member aggregation rule. For purposes of section 410(b), and in accordance with section 414(q)(6), a highly compensated employee who is a 5-percent owner or one of the ten most highly compensated employees and any family member (or members) of such a highly compensated employee who is also an employee of the employer are to be treated as a single highly compensated employee. If any member of that group is benefiting under a plan, the deemed single employee is treated as benefiting under the plan. If no member of that group is benefiting under a plan, the deemed single employee is treated as not benefiting under the plan.
Source credit, amendments & notes

[T.D. 8363, 56 FR 47656, Sept. 19, 1991]

Treas. Reg. § 1.410(b)-8 — Additional rules. · eCFR editorial change effective 2016-09-09 · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr26-1.410%28b%29-8&asof=1982-04-05 · printed Oct 16, 2026
On this page
  • (a) Testing methods
  • (b) Family member aggregation rule.
Implements
I.R.C. § 410 Minimum participation standards
Cited by (code & regs)
Guidance addressing this section

No documents are primarily about this section.

Also cited in 1 other documents
IRS / Treasury
Proposed Rules
  • REG-149752-03Proposed Apr 5, 2004 — Proposed regulations under section 410(b) of the Code allow employees of a tax-exempt organization who are eligible to make salary reduction contributions to a…

No court rulings in the library cite this provision yet.

No private letter rulings in the library cite this provision yet.

Each row is a version of the text as published by the official source. Code dates are the edition/release point that first reflected the change; regulation dates are eCFR effective dates. The library checks the official sources automatically, so new versions appear here on their own; “run” opens the sync that recorded a version.

EffectiveThroughSourceAmended by
Apr 1, 1997currenteCFR editorial change effective 2016-09-09 run 2T.D. 8363, 56 FR 47656, Sept. 19, 1991View
Provision-level history (blame)