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Nondiscrimination Rule
(redirected from Non-Discrimination Rules)

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Nondiscrimination Rule
A provision of ERISA that requires employer-sponsored retirement plans to offer the same benefits in the same plans to all employees regardless of position in the company. That is, the nondiscrimination rule forbids employees of different rank from buying into the same plan and receiving different benefits. This protects both low income and high income employees. Plans violating the nondiscrimination rule are not tax deductible.

Nondiscrimination rule. All qualified retirement plans, including 401(k) plans, must follow nondiscrimination rules. Among other things, the rules prevent highly paid employees from receiving more generous benefits than other employees.

However, employers may offer nonqualified plans to which antidiscrimination rules don't apply. Unlike contributions to qualified plans, contributions to nonqualified plans are not tax deductible.



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The Employee Retirement Income Security Act (ERISA) is the granddaddy of federal regulations and sets a wide range of standards and rules for both health and retirement employee benefit plans, including non-discrimination rules and fiduciary responsibility.
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After a chapter outlining the functions and basic principles of the WTO, the first volume of the collection focuses on the need for and the genesis of multilateral trade rules and disciplines, and examines core non-discrimination rules.
 
 
 
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