§ 401(k)(16)(B)

a starter 401(k) deferral-only arrangement

UNDECIDED

0 of 2 settled

  1. 1

    § 401(k)(16)(B)

    ALL OF

    For purposes of this paragraph, the term “starter 401(k) deferral-only arrangement” means any cash or deferred arrangement which meets—

    “any cash or deferred arrangement which meets—” Opening words
    “the automatic deferral requirements of subparagraph (C),” § 401(k)(16)(B)(i)
    “the contribution limitations of subparagraph (D), and” § 401(k)(16)(B)(ii)
    “the requirements of subparagraph (E) of paragraph (13).” § 401(k)(16)(B)(iii) needs Step 2 Subparagraph (E) notice requirements met UNDECIDED
  2. 2

    § 401(k)(13)(E)

    Subparagraph (E) notice requirements met

    ALL OF
    “within a reasonable period before each plan year, each employee eligible to participate in the arrangement for such year receives written notice of the employee’s rights and obligations under the arrangement”

    “Reasonable” implies facts and circumstances. Cited by Reg. § 1.401(k)-3(k)(1)

    “is sufficiently accurate and comprehensive to apprise the employee of such rights and obligations”
    “is written in a manner calculated to be understood by the average employee to whom the arrangement applies”
    “the notice explains the employee’s right under the arrangement to elect not to have elective contributions made on the employee’s behalf (or to elect to have such contributions made at a different percentage)”
    “in the case of an arrangement under which the employee may elect among 2 or more investment options, the notice explains how contributions made under the arrangement will be invested in the absence of any investment election by the employee”
    “the employee has a reasonable period of time after receipt of the notice described in subclauses (I) and (II) and before the first elective contribution is made to make either such election”

    “Reasonable” implies facts and circumstances. Cited by Reg. § 1.401(k)-3(k)(1)