Section 4. ACP Test Safe Harbor Matching Contributions

[NO ADDITIONAL CONTRIBUTIONS ARE REQUIRED IN ORDER TO SATISFY THE REQUIREMENTS FOR A SAFE HARBOR CODA. HOWEVER, IF THE EMPLOYER DESIRES TO MAKE MATCHING CONTRIBUTIONS OTHER THAN BASIC OR ENHANCED MATCHING CONTRIBUTIONS, THEN COMPLETE THE FOLLOWING.]

For the Plan Year, the Employer will make ACP Test Safe Harbor Matching Contributions to the account of each Eligible Employee in the amount of [ELECT ONE]:

[ ] a. ____ percent of the employee's Elective Deferrals that do not exceed 6 percent of the employee's Compensation for the Plan Year.

[ ] b. ____ percent of the employee's Elective Deferrals that do not exceed ____ percent of the employee's Compensation for the Plan Year plus ____ percent of the employee's Elective Deferrals thereafter, but no Matching Contributions will be made on Elective Deferrals that exceed 6 percent of Compensation. [THE NUMBER INSERTED IN THE THIRD BLANK CANNOT EXCEED THE NUMBER INSERTED IN THE FIRST BLANK.]

[ ] c. the employee's Elective Deferrals that do not exceed _____ percentage of the employee's Compensation for the Plan Year. Such percentage is determined by the Employer for the year but in no event can exceed 4 percent of the employee's Compensation.

(Note to reviewer: In electing option c, the discretionary Matching Contribution formula, plan provisions must provide that the amount contributed will be allocated to Participants under a definite, predetermined formula which meets Reg. § 1.401-1. For example, a discretionary match can be made as a uniform percentage of Elective Deferrals, or as a discretionary uniform percentage of each employee's compensation for the Plan Year, as shown above. In no event can the amount contributed for each employee under this discretionary matching contribution formula exceed 4 percent of the employee's Compensation for the Plan Year, and the allocation made must be definitely determinable in accordance with the Regulation.)

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

(Note to reviewer: Other formulas for ACP Test Safe Harbor Matching Contributions are permissible, provided (i) Matching Contributions are not made on Elective Deferrals in excess of 6 percent of Compensation (ii) the amount of Matching Contributions subject to the Employer's discretion cannot exceed 4 percent of Compensation, (iii) no HCE can receive a greater rate of Matching Contributions than an NHCE at the same rate of Elective Deferrals, and (iv) the rate of Matching Contributions cannot increase as a participant's Elective Deferrals increase.

Matching contributions do not satisfy the ADP test safe harbor requirements or the ACP test safe harbor requirements if they are conditioned on an Employee's completion of a minimum number of Hours of Service during the year or employment on a particular day.)

Vesting of ACP Test Safe Harbor Matching Contributions

ACP Test Safe Harbor Matching Contributions will be vested in accordance with the following schedule:

[INSERT SCHEDULE OR REFER TO SECTION IN ADOPTION AGREEMENT CONTAINING VESTING REQUIREMENTS.]

(Note to reviewer: Vesting schedules must comply with Code § 411(a)(2)(B).)

[COMPLETE THE FOLLOWING SECTION ONLY IF THE PLAN UTILIZES A QACA FOR PURPOSES OF MEETING THE SAFE HARBOR]