Assume the Owners decide to make an annual contribution that would provide the maximum benefit for owners/shareholders under the current tax code provisions. Below is a comparison of the different types of plans available, and the various amounts required to provide the desired benefit.
NameAgeIncomeTraditionalNew Comparability
Officer/Shareholder # 158$250,000.00$50,000.00$50,000.00
Officer/Shareholder # 241$250,000.00$50,000.00$50,000.00
Group A $500,000.00$100,000.00$100,000.00
Manager46$89,774.00$17,954.80$7,181.92
Group B $89,774.00$17,954.80$7,181.92
Staff #1 30 $17,854.00 $3,570.80 $892.70
Staff #225 $31,287.00 $6,257.40 $1,564.35
Staff #341 $31,399.00 $6,279.80 $1,569.95
Staff #446 $30,026.00 $6,005.20 $1,501.30
Staff #536 $39,997.00 $7,999.40 $1,999.85
Staff #633 $31,622.00 $6,324.40 $1,581.10
Staff #742 $39,765.00 $7,953.00 $1,988.25
Staff #844 $22,008.00 $4,401.60 $1,100.40
Staff #926 $33,718.00 $6,743.60 $1,685.90
Group C $277,676.00$55,535.20$13,883.80
Total $867,450.00$173,490.00$121,065.75
Group A%  57.64% 57.64% 82.60%
Group B% 10.35%10.35%5.93%
Group C% 32.01%32.01%11.47%

The plan satisfies the non-discrimination regulations because the equivalent benefit percentages (i.e., the real value of the contributions on a future value basis) for all employees are the same.

Additional information can be found in our August 2013 Newsletter titled Cross-Testing: The Right Tool for Many Jobs.