Table of Contents›Article 5. Qualified Automatic Contribution Arrangement (QACA)
Section 2. Default Percentage [CHECK ONE OF THE OPTIONS BELOW AND INSERT
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A PERCENTAGE OR PERCENTAGES AND, IF APPLICABLE, A DATE]
[ ] The Default Percentage is [ ]%.
[ ] The initial Default Percentage is [ ]% and will increase by [ ] INSERT NUMBER 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]
(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.)
APPENDIX – REDLINED VERSION SHOWING CHANGES FROM 2017
This redlined version shows changes to the 2017 edition, including revisions in February and December 2024.
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