Section 3. ADP Test Safe Harbor Contributions

[ ] Basic Matching Contributions

In lieu of Basic Matching Contributions, the Employer will make the following contributions for the Plan Year [SELECT EITHER OR BOTH]:

[ ] Enhanced Matching Contributions

The Employer will make Matching Contributions to the account of each Eligible Employee in an amount equal to the sum of:

(i) the employee's Elective Deferrals that do not exceed ____ percent of the employee's Compensation for the Plan Year plus

(ii) ____ percent of the employee's Elective Deferrals that exceed ____ percent of the employee's Compensation for the Plan Year and that do not exceed ____ percent of the employee's Compensation for the Plan Year.

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

[IN THE BLANK IN (i) AND THE SECOND BLANK IN (ii), INSERT A NUMBER THAT IS 3 OR GREATER BUT NOT GREATER THAN 6. THE FIRST AND LAST BLANKS IN (ii) MUST BE COMPLETED SO THAT, AT ANY RATE OF ELECTIVE DEFERRALS, THE MATCHING CONTRIBUTION IS AT LEAST EQUAL TO THE MATCHING CONTRIBUTION RECEIVABLE IF THE EMPLOYER WERE MAKING BASIC MATCHING CONTRIBUTIONS, BUT THE RATE OF MATCH CANNOT INCREASE AS DEFERRALS INCREASE. FOR EXAMPLE, IN A SAFE HARBOR PLAN THAT DOES NOT INCLUDE A QACA, IF "4" IS INSERTED IN THE BLANK IN (i), (ii) NEED NOT BE COMPLETED. SIMILARLY, IN A SAFE HARBOR PLAN THAT INCLUDES A QACA, IF “3.5” IS INSERTED IN THE BLANK IN (i), (ii) NEED NOT BE COMPLETED. NOTE THAT THE SAMPLE PLAN LANGUAGE DESCRIBES THE BASIC MATCHING CONTRIBUTION AS THE DEFAULT SAFE HARBOR CONTRIBUTION UNLESS THE EMPLOYER ELECTS THE ENHANCED MATCHING CONTRIBUTION OR THE SAFE HARBOR NONELECTIVE CONTRIBUTION INSTEAD IN THE ADOPTION AGREEMENT.]

(Note to reviewer: If an employer inserts a number greater than 6 in the last blank of (ii) above, which would provide more than a 6% compensation cap on enhanced matching contributions, the ACP Test Safe Harbor will be violated. The above completion statement may be modified to so indicate.)

[ ] The Employer will make a Safe Harbor Nonelective Contribution to the account of each Eligible Employee in an amount equal to 3 percent of the employee's Compensation for the Plan Year, unless the Employer inserts a greater percentage here ________.

[ ] If checked, the ADP Test Safe Harbor Contributions will be made to ___________ .

[INSERT NAME OF DEFINED CONTRIBUTION PLAN OF EMPLOYER]

(Note to reviewer: The option to make ADP Test Safe Harbor Contributions to another defined contribution plan is permitted only if this Plan is a nonstandardized plan.)