I. Adoption statement

Statement of Requirement: Code § 401(b)(2); Reg. §§ 1.401(k)-1(a) and 1.414(w)-1

(Note to reviewer: A cash or deferred arrangement ("CODA") is an arrangement under which eligible employees may make Elective Deferral elections. Such elections cannot relate to compensation that is payable prior to the adoption or effective date of the CODA. In addition, except for occasional, bona fide administrative considerations, contributions made pursuant to such an election cannot precede the earlier of (1) the performance of services relating to the contribution and (2) when the compensation that is subject to the election would be payable to the employee in the absence of an election to defer. A plan intending to satisfy the requirements of Code § 414(w) (an “eligible automatic contribution arrangement” or “EACA”), Code §§ 401(k)(12) and 401(m)(11) (a "Safe Harbor CODA") or §§ 401(k)(13) and 401(m)(12) (a “qualified automatic contribution arrangement,” or “QACA”) generally must satisfy such requirements, including the notice requirement, for the entire Plan Year unless the employer makes a mid-year election to a QACA or traditional 401(k) feature. See Regulations §§ 1.401(k)-3 and 1.401(m)-3 and CODA LRM XX for more information and sample plan language regarding Safe Harbor CODAs and QACAs, and CODA LRM XXI for an EACA.)

(Note to reviewer: For plan years beginning after December 29, 2022, Section 317 of the SECURE 2.0 Act of 2022 extends the deadline for a sole proprietor with no other employees to make elective deferrals to a new 401(k) plan to the individual’s tax return filing date (without extensions) following the end of the first plan year year. Thus, a calendar year sole proprietor will have until April 15 to decide to adopt a 401(k) plan and make contributions retroactive to the preceding year. See DC LRM #13 and CODA LRM III.)