§ 401(m)(12)

paragraph (2) treated as met

UNDECIDED

0 of 3 settled

  1. 1

    § 401(m)(12)

    ALL OF

    A defined contribution plan shall be treated as meeting the requirements of paragraph (2) with respect to matching contributions if the plan—

    “A defined contribution plan” Opening words
    “with respect to matching contributions” Opening words
    “is a qualified automatic contribution arrangement (as defined in subsection (k)(13)),” § 401(m)(12)(A)
    “meets the notice requirements of subsection (k)(13)(E), and” § 401(m)(12)(B) needs Step 2 Subparagraph (E) notice requirements met UNDECIDED
    “meets the requirements of paragraph (11)(B).” § 401(m)(12)(C) needs Step 3 matching contribution limitation 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)

  3. 3

    § 401(m)(11)(B)

    matching contribution limitation requirements met

    ALL OF

    The requirements of this subparagraph are met if—

    “matching contributions on behalf of any employee may not be made with respect to an employee’s contributions or elective deferrals in excess of 6 percent of the employee’s compensation,” § 401(m)(11)(B)(i)
    “the rate of an employer’s matching contribution does not increase as the rate of an employee’s contributions or elective deferrals increase, and” § 401(m)(11)(B)(ii)
    “the matching contribution with respect to any highly compensated employee at any rate of an employee contribution or rate of elective deferral is not greater than that with respect to an employee who is not a highly compensated employee.” § 401(m)(11)(B)(iii)