Article 5. Qualified Automatic Contribution Arrangement (QACA)

[ ] If checked, the QACA Safe Harbor CODA provisions of Section 5 apply

Section 5.1(a) Covered Employee

Employees covered under the QACA are: [CHECK ONE OF THE OPTIONS BELOW]

[ ] All Plan participants.

[ ] All Plan participants who do not have an affirmative election in effect regarding Elective Deferrals.

[ ] All Plan participants who become Plan participants on or after the effective date of the QACA and who do not have an affirmative election in effect regarding Elective Deferrals.

Section 5.1(b) Default Percentage [CHECK ONE OF THE OPTIONS BELOW AND INSERT A PERCENTAGE OR PERCENTAGES AND, IF APPLICABLE, A DATE]

[ ] The initial Default Percentage is 3%, and will increase by one percentage point as described in Section 5.b. of Article [ ] of the Plan until the Default Percentage is 6%. Each increase will be effective at the beginning of the Plan Year, or the first payroll period in which this default percentage is put in effect, and will apply for the entire Plan Year.

[ ] The initial Default Percentage is [ ] and will increase by [ ] percentage point(s) as described in Section 5.b. of Article [ ] of the Plan until the Default Percentage is [ ]%. Each increase will be effective at the beginning of the Plan Year, or the first payroll period in which this default percentage is put in effect, and will apply for the entire Plan Year. [INSERT AN INITIAL DEFAULT CONTRIBUTION PERCENTAGE THAT IS NOT LESS THAN 3% AND NOT GREATER THAN 10%. THE DEFAULT PERCENTAGE MUST BE NO LESS THAN 6% AFTER THE END OF THE THIRD PLAN YEAR AFTER THE INITIAL DEFAULT PERCENTAGE AND NOT GREATER THAN 15%. IT MAY NOT BE NECESSARY TO INSERT A NUMBER IN THE SECOND AND FOURTH BLANKS. FOR EXAMPLE, IF “6” IS INSERTED IN THE FIRST BLANK, THE SECOND AND FOURTH BLANKS DO NOT NEED TO BE COMPLETED.]

{5.1(c) Non-electable provision}

5.1(d) Vesting of ADP Test Safe Harbor Contributions under QACA:

ADP Test Safe Harbor Contributions will be nonforfeitable pursuant to the following schedule:

End of Year 1 ________

End of Year 2 100%

116 | Cash or Deferred Arrangement (CODA) LRM Package 01-2024

[INSERT ANY PERCENTAGE FOR THE END-OF-YEAR-ONE VESTING. ADP SAFE HARBOR CONTRIBUTIONS MUST BE 100% VESTED AFTER THE COMPLETION OF TWO YEARS OF SERVICE.]

{5.1(e) Non-electable provision}

XXI. Eligible Automatic Contribution Arrangement (EACA)

Statement of Requirement: Code §§ 401(k)(8)(E), 414(w), 414(cc) and 4979(f)(1); Reg. §§ 1.414(w)-1 and 54.4979-1(c)

(Note to reviewer: CODA LRM XXI is required only in plans offering EACAs. Under an EACA, an employee can request a distribution of Default Elective Deferrals within 90 days of the first contribution of Default Elective Deferrals, notwithstanding any limitations on distributions contained in CODA LRM XVI. An EACA may not be added to a CODA for any Plan Year unless notice of the EACA is provided to employees prior to the beginning of such Plan Year.)

(Note to reviewer: Code § 414(cc), added by the SECURE 2.0 Act of 2022, provides a safe harbor for correction of certain automatic contribution errors occurring after December 31, 2023. After addition, new § 414(cc) provides that if certain conditions are satisfied, a sponsor’s failure to include an eligible employee in an automatic contribution arrangement or to implement automatic contributions generally in a § 401(k) plan that is so required will not cause loss of CODA qualification if the failure is timely self-corrected. Sample plan language is not provided in this regard as (a) this is not on the Cumulative List and (b) this is an operational correction for which enabling plan language cannot be pre-approved. However, see Part I of Notice 2024-2 for administrative guidance in this regard.)

Sample Plan Language:

Article [ ] Eligible Automatic Contribution Arrangement (EACA)