# Nondiscrimination Requirements for Certain Defined Contribution Retirement Plans
> **IRS** · Final regulations. · Published 2001-06-29 · Effective 2001-06-29 · 66 FR 34535
## Document
- **Document number:** 01-16326
- **Category:** other
- **Sub-agency:** IRS
- **Federal Register citation:** 66 FR 34535
- **CFR reference:** 26 CFR 1
- **Publication date:** 2001-06-29
- **Effective date:** 2001-06-29
- **Treasury docket:** TD 8954
## Abstract

This document contains final regulations that permit certain defined contribution retirement plans to demonstrate compliance with the nondiscrimination requirements based on plan benefits rather than contributions. Under the final regulations, a defined contribution plan can test on a benefits basis if it provides broadly available allocation rates, age-based allocations, or passes a gateway requiring allocation rates for nonhighly compensated employees to be at least 5% of pay or at least one-third of the highest allocation rate for highly compensated employees. The regulations also permit qualified defined contribution and defined benefit plans that are tested together as a single, aggregated plan (and that are not primarily defined benefit or broadly available separate plans) to test on a benefits basis after passing a similar gateway, under which the allocation rate for nonhighly compensated employees need not exceed 7\1/2\% of pay. These final regulations affect employers that maintain qualified retirement plans and qualified retirement plan participants.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2001/06/29/01-16326/nondiscrimination-requirements-for-certain-defined-contribution-retirement-plans)
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