IRS Issues Final Regulations on Exempt Organization and 401(k) Non-Discrimination Testing

On July 21, 2006, the Internal Revenue Service issued final regulations permitting, in certain instances, employees of taxexempt organizations described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, to be excluded for the purposes of testing whether a Section 401(k) plan meets the minimum coverage requirements of Section 410(b).