New Comparability Plans

These plans, sometimes referred to as "cross-tested plans," are
usually profit sharing plans that are tested for nondiscrimination
as though they were defined benefit plans. By doing so, certain
employees may receive much higher allocations than would be
permitted by standard nondiscrimination testing. New
comparability plans are generally utilized by small businesses
who want to maximize contributions to owners and higher paid
employees while minimizing those for all other employees.

Employees are separated into two or more identifiable groups
such as owners and non-owners. Each group may receive a
different contribution percentage. For example, a higher
contribution may be given to the owner group than the non-owner
group, as long as the plan satisfies the nondiscrimination
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