Nondiscrimination Testing (NDX)

Accurate. Reliable. Compliant.

Introducing the new way to test your employee benefit plans

By law, Cafeteria Plans, health and dependent care flexible spending accounts, and self-insured health plans (including HRAs) must not discriminate in favor of highly compensated or high-level employees. It is also important to understand that fully insured plans will be required to meet nondiscrimination requirements once anticipated health care reform regulations are issued.

Calculations must be performed and plans must be tested annually to ensure they do not favor highly compensated or high-level employees with respect to eligibility, benefits, or utilization. If a plan is discriminatory, these employees will have adverse tax consequences. Test results are subject to audit by the IRS.

Special Report
Special Report:

WHAT EMPLOYERS NEED TO KNOW ABOUT THE NONDISCRIMINATION RULES THAT APPLY TO CAFETERIA PLANS, HEALTH PLANS, AND DCAPS

Get the Special Report

Call 800.950.1216 to learn more now or complete this form
to receive a FREE special report.


Introducing Nondiscrimination Testing (NDX), powered by Claims-X-Change and now available on Thomson Reuters Checkpoint®.

This dynamic new tool delivers an accurate, more cost-effective and automated way for health plan administrators and advisors to help employers stay compliant with nondiscrimination requirements.

Case Study:

LEADING ADMINISTRATOR OF CONSUMER-DIRECTED BENEFITS AUTOMATES MANUAL TESTING PROCESS AND IMPROVES CLIENT TURNAROUND TIME BY 90% WHILE INCREASING NUMBER OF CLIENTS SERVED—WITH THE SAME STAFF

New Case Study:

SAVE 80% OF TIME SPENT ON NONDISCRIMINATION TESTING—WHILE IMPROVING THE ACCURACY OF TEST RESULTS


Call 800.950.1216to learn more now or complete this form to receive a FREE special report.

List of Included Test Bundles

Index Test Bundle
1 Cafeteria Plans (Section 125) Non-Discrimination Tests
1.1 Cafeteria Plan (Section 125) 25% Key Employee Concentration Test
1.2 Cafeteria Plan Eligibility Test
1.3 Cafeteria Plan Safe Harbor Percentage Test (Eligibility Test)
1.4 Cafeteria Plan Contributions and Benefits Test – Availability & Utilization

2 Health FSA (Section 105(h)) Non-Discrimination Tests
2.1 Health FSA Eligibility Test – 3 Sub-Tests
A Non-Discriminatory Classification Test
B 70% Test
C 70%/80% Test
2.2 Health FSA Benefits Test

3 Dependent Care (Section 129) Non-Discrimination Tests
3.1 Dependent Care More-Than-5% Owners Concentration Test
3.2 Dependent Care 55% Average Benefits Test
3.3 Dependent Care Eligibility
3.4 Dependent Care Safe Harbor Percentage Test (Eligibility Test)
3.5 Dependent Care Contributions and Benefits

4 HRA (Section 105(h)) Non-Discrimination Tests
4.1 HRA Eligibility Test – 3 Sub-Tests
A Non-Discriminatory Classification Test
B 70% Test
C 70%/80% Test
4.2 HRA Benefits Test

5 Self-Insured (Section 105(h)) Non-Discrimination Tests
5.1 Self-Insured Eligibility Test – 3 Sub-Tests
A Non-Discriminatory Classification Test
B 70% Test
C 70%/80% Test
5.2 Self-Insured Benefits Test

6 Standard Test (Tests 1.1, 3.1 and 3.2)

7 Expanded Test (Test Bundles 1, 2 and 3) – Cafeteria Only

8 Comprehensive Test (Test Bundles 1, 2, 3 and 4) – Cafeteria + HRA

With Nondiscrimination Testing (NDX), you’ll be able to:

  • Save hours of time using our unique and up-to-date Microsoft® Excel® templates (designed to work with our secure online testing system) that make it easy for you to keep up with the most current law and gather the employer data required for testing in a consistent and usable format
  • Accurately and automatically identify highly compensated and other high-level employees in accordance with current regulations using inherent logic in the tool
  • Reduce the risk of misunderstanding using built-in contextual help features that will help you explain tests to clients
  • Increase your understanding of nondiscrimination requirements by linking directly to EBIA analysis and guidance on Checkpoint (with an EBIA subscription)
  • Avoid or reduce the likelihood of having a plan fail a test and jeopardize favorable tax treatment for highly compensated and other high-level employees using our built-in recommendation module
  • Set up multiple users at no additional cost, including an unlimited number of employer log-ins (with or without restricted access privileges) to facilitate employer self-service

You’ll also have access to an extensive collection of primary source materials (including relevant statutes, regulations and rulings) on Checkpoint, the premier online information service relied on by employee benefits professionals.

Also Available

EBIA's Cafeteria Plans cover
EBIA’s Cafeteria Plans

Written and edited by experienced employee benefits attorneys, EBIA Cafeteria Plans is one of the nation's leading resources for cafeteria plan sponsors and administrators, and discusses just about every cafeteria plan design and administration issue. It provides in-depth coverage of legal requirements for cafeteria plans, health FSAs, and DCAPs, and features practical, real-world examples, tips, tables, checklists, and sample documents to keep you in compliance and on top of new developments.
Learn More



EBIA’s Health Care Reform for Employers and Advisors

EBIA’s Health Care Reform for Employers and Advisorsis your essential partner for employer plan compliance, and provides up-to-date expert analysis of the key requirements that affect employers, advisors, and insurers. Written and edited by experienced employee benefits attorneys, it features in-depth coverage of legal requirements and information critical to effective decision-making – with examples, tables, implementation timelines, sample documents, and practical tips that will help you comply with the myriad of complex rules.

Learn More