95. Contribution / Allocation formula
0325 Publ 6088 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States
Statement of Requirement: Reg. §§ 1.401(a)(4)-2(b)(2) and 1.401(a)(4)-
2(b)(3); Rev. Proc. 2017-41R ev. Proc. 2023-37,
2023-51 I.R.B. 1491, sec. 5.15(2)1 2.02(4)
Document Provision: _____
(Note to reviewer: Nonstandardized plans may automatically, or by an option, satisfy the safe harbor contained in Reg. § 1.401(a)(4)-2(b)(2) (regarding plans with a uniform allocation formula which may or may not impute permitted disparity) and/or Reg. § 1.401(a)(4)-2(b)(3) (regarding plans with a uniform points allocation formula). Compensation for this purpose cannot exceed the limitation under § 401(a)(17) (see LRM #6 for the definition of compensation). As noted, plan provisions may allow for permitted disparity pursuant to Code § 401(l) and the regulations thereunder. See LRM #29 for sample language in this regard.)
(Note to reviewer: No § 401(a)(4) failsafe language is allowed in any Pre-approved
Plan document. The plan must pass nondiscrimination testing operationally based
on Regs. § 1.401(a)(4)-1 through § 1.401(a)(4)-13.) No § 401(a)(4) failsafe language is
allowed.)
End of DC LRMs
310 | D e f i n e d C o n t r i b u t i o n P l a n L R M P a c k a g e 0 1 / 2 0 2 4
311 | D e f i n e d C o n t r i b u t i o n P l a n L R M P a c k a g e 0 1 / 2 0 2 4
Publication 6088 (3-2025) Catalog Number 95663D Department of the Treasury Internal Revenue Service www.irs.gov
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