EMPLOYEE CONTRIBUTIONS 35. Contributions subject to ACP test

Statement of Requirement: Code § 401(m)

(Note to reviewer: If a plan provides for contributions that are subject to the special nondiscrimination requirements of § 401(m), it must satisfy the applicable provisions in CODA LRM IX.)

(Note to reviewer: LRM provisions #36 and #37 are required if the plan accepts nondeductible employee contributions or previously permitted but has discontinued such contributions.)

Sample Plan Language:

If elected in the Adoption Agreement, the Plan will accept After-Tax Employee Contributions. A separate account will be maintained for the After-Tax Employee Contributions of each Participant.

Sample Adoption Agreement Language:

Participants:

[ ] may

[ ] may not

make employee contributions on an after-tax basis.

(Note to reviewer: See LRM #25 regarding after-tax employer contributions, reflecting changes made by Section 604 of the SECURE Act of 2022. See CODA LRM III for Roth contributions.)

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