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Minimum Participation Test

Last Updated March 22, 2009


A test that must be performed for defined benefit plans , to ensure that the plan benefits at least the lesser of --

  • 50 employees of the employer, or the greater of --
    • 40 percent of all employees of the employer, or
    • 2 employees (or if there is only 1 employee, such employee).
  • Does not apply to defined contribution plans

Referring Cite

IRC § 401(a)(26), Treas. Reg. §1.401(a)(26)-7(a)

Additional Helpful Information

The plan must satisfy the test on each day of the plan year