Table of Contents›Article 5. Qualified Automatic Contribution Arrangement (QACA)
Section 2. Default Percentage [CHECK ONE OF THE OPTIONS BELOW AND INSERT
0325 Publ 6087 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States
A PERCENTAGE OR PERCENTAGES AND, IF APPLICABLE, A DATE]
[ ] The Default Percentage is [ ]%.
[ ] The initial Default Percentage is [ ]% and will increase by [ ] INSERT
NUMBER one percentage point(s) as described in Section 1.2 of Article [ ] of the Plan until the
Default Percentage is [ ]%. [INSERT THE HIGHEST DEFAULT PERCENTAGE THAT
WILL APPLY] Each increase will be effective at the beginning of the Plan Year unless a
different date is inserted here: ______________. [INSERT THE DATE OF EACH INCREASE]
120 | Cash or Deferred Arrangement (CODA) LRM Package 01-2024
(Note to reviewer: For plan years beginning after December 31, 2019, Section 102(a) of the SECURE Act of 2019 amended Code § 401(k)(13)(C)(iii) to provide that the qualifying percentage may not exceed 15% (or 10% during the initial period of automatic elective contributions described in § 401(k)(13)(C)(iii)(I)), which would be applicable to a QACA that is also an EACA.)
121 | Cash or Deferred Arrangement (CODA) LRM Package 01-2024
Publication 6087 (3-2025) Catalog Number 95662S Department of the Treasury Internal Revenue Service www.irs.gov
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