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New Comparability Plans

New Comparability Plans, also known as cross-tested plans, enable firm owners to divide plan participants into designated groups, such as ownership, job function, and tenure. In many cases, the plans can make larger contributions for one group (those closest to retirement) than for another.

For firms that wish to enable key employees to save more for retirement, particularly those who have difficulty meeting non-discrimination requirements of standard Profit-Sharing or 401(k) plans, New Comparability Plans may be the answer. 

Employers may also use these plans to reduce retirement plan costs while maximizing contributions. 

Among the plan’s highlights:  

  • Contributions for older workers in age-weighted plans may be considerably higher than those for younger employees.
  • Owners with younger employees may be able to benefit from higher contributions for themselves.
  • It’s designed to take advantage of cross-testing—where contributions are tested on the basis of benefits at retirement age rather than on the basis of amounts contributed.


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A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) for Equitable Financial

Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (NY, NY); Equitable Financial Life Insurance Company of America, an AZ stock company with main administrative headquarters in Jersey City, NJ; and Equitable Distributors, LLC. Equitable Advisors is the brand name of Equitable Advisors, LLC (member FINRASIPC) (Equitable Financial Advisors in MI & TN). The subsidiaries of Equitable Holdings, Inc. and their employees and associates do not provide tax or legal advice or services.

GE-3498581 (3/21) (Exp. 01/23)