38. Deductible voluntary employee contributions

Statement of Requirement: Code § 219

(Note to reviewer: The following provision is required if the plan permitted deductible employee contributions prior to January 1, 1987.)

Sample Plan Language:

The plan administrator will not accept deductible employee contributions which are made for a taxable year beginning after December 31, 1986. Contributions made prior to that date will be maintained in a separate account which will be nonforfeitable at all times. The account will share in the gains and losses under the plan in the same manner as described in section _____of the plan. No part of the deductible voluntary contribution account will be used to purchase life insurance. Subject to section ____, Joint and survivor annuity requirements (if applicable), the participant may withdraw any part of the deductible voluntary contribution account by making a written application to the plan administrator.

(Note to reviewer: The first fill-in blank above should reference any section of the plan addressing the crediting of earnings to participant accounts. The second fill-in blank should correspond to the plan’s joint and survivor annuity requirements section.)

(Note to reviewer: See LRM #38A for Roth deemed IRAs and CODA LRM III for Roth Elective Deferrals.)