Section 1. Rules of Application

1.1 If the Employer has elected one of the Safe Harbor CODA options in the adoption agreement, the provisions of this article shall apply for the Plan Year and any provisions relating to the ADP test described in Code § 401(k)(3) or the ACP test described in Code § 401(m)(2) do not apply.

(Note to reviewer: This CODA LRM XX provides sample plan language for Plans using the safe harbor methods to satisfy the ADP and ACP tests. If Matching Contributions that do not satisfy the ACP Test Safe Harbor or Employee Contributions can be made under the Plan, then this language, including that in Section 1.1 above, will have to be modified to

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satisfy the relevant portions of CODA LRMs XII and XIII using the Current Year Testing method and specifying which contributions will be used in the ACP test. See Reg. §§ 1.401(m)-2(a)(5)(iv) and 1.401(m)-3.

See Reg. §§ 1.401(k)-3(e) and 1.401(m)-3(f) for safe harbor plan rules requiring certain provisions to remain in effect for an entire 12-month year. See also Notice 2016-16 for permissible and impermissible mid-year safe harbor plan amendments.)

1.2 To the extent that any other provision of the Plan is inconsistent with the provisions of this article, the provisions of this article govern.