TABLE OF CONTENTS – DC LRMs
0325 Publ 6088 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States
PART I - ALL PLANS ..................................................................................................8
DEFINITIONS ...........................................................................................................8
Definition of year of service ........................................................................8
Definition of break in service ......................................................................8
Definition of hour of service ........................................................................9
Elapsed time ...............................................................................................11
Definition of plan year ...............................................................................12
Definition of compensation........................................................................13
Definition of earned income ......................................................................16
Definition of disability and imputed compensation ...................................16
Definition of employee ..............................................................................17
Definition of leased employee ...................................................................17
Definition of highly compensated employee .............................................18
Definition of owner-employee ...................................................................20
Definition of self-employed individual ......................................................20
Profit-sharing plan – Definition of normal retirement age, mandatory retirement age restrictions ........................................................21
14A. Money purchase (including target benefit) plan–- definition of normal retirement age ................................................................................21
Definition of benefiting ..............................................................................23
Definition of straight life annuity ..............................................................23
MINIMUM PARTICIPATION STANDARDS ......................................................23
Maximum age restrictions not permitted ...................................................23
Provisions for entry into participation .......................................................23
Eligibility computation periods..................................................................24
Use of computation periods .......................................................................25
All years of service counted toward eligibility except after certain breaks in service .........................................................................................25
Eligibility break in service, one year hold-out rule ....................................26
Participation upon return to eligible class ..................................................27
EMPLOYER CONTRIBUTIONS ...........................................................................27
3 | D e f i n e d C o n t r i b u t i o n P l a n L R M P a c k a g e 0 1 / 2 0 2 4
Money purchase plan -- definite contribution formula ..............................27
Profit-sharing plan -- definite allocation formula ......................................28
25A. Uniform Points Allocation Formula ..........................................................29
Target benefit plans - stated benefit, plans not providing for permitted disparity .....................................................................................30
Target benefit formula -- stated benefit - plans providing for permitted disparity .....................................................................................33
Target benefit plans – calculation of employer contributions ...................42
Permitted disparity .....................................................................................49
Accrual limitations based upon age not permitted .....................................54
Limitation on allocations ...........................................................................54
Qualified Longevity Annuity Contracts .....................................................64
[RESERVED] ............................................................................................66
Separate accounts for each employee ........................................................66
EMPLOYEE CONTRIBUTIONS ...........................................................................67
Contributions subject to ACP test ..............................................................67
Separate account - nondeductible employee contributions ........................68
Nonforfeitability of employee contributions .............................................68
Deductible voluntary employee contributions ...........................................68
38A. Deemed IRAs .............................................................................................69
FORFEITURE PROVISIONS .................................................................................70
Treatment and allocation of forfeitures ......................................................70
Forfeitures - withdrawal of employee contributions ..................................71
Reinstatement of benefit ............................................................................71
DISTRIBUTION PROVISIONS .............................................................................71
Joint and survivor annuity, qualified optional survivor annuity, and preretirement survivor annuity requirements .............................................71
Vesting on distribution before break-in-service, cash-outs .......................78
Restrictions on immediate distributions .....................................................81
44A. Money purchase (including target benefit) plans – restriction on inservice distributions ...................................................................................82
- Commencement of benefits .......................................................................83
4 | D e f i n e d C o n t r i b u t i o n P l a n L R M P a c k a g e 0 1 / 2 0 2 4
Early retirement with age and service requirement ...................................84
Non-transferability of annuities .................................................................84
Conflicts with annuity contracts ................................................................84
Timing and modes of distribution ..............................................................84
Optional forms of benefit must be stated in the plan .................................98
Direct Rollovers .........................................................................................98
51A. Recontributions ........................................................................................105
VESTING PROVISIONS ......................................................................................107
Designation of vesting computation period .............................................107
Full vesting upon attainment of normal retirement age ...........................108
Optional vesting schedules must be at least as favorable as the applicable minimum vesting schedules ...................................................108
Crediting years of service - vesting .........................................................108
Vesting break in service - 1-year holdout ................................................109
Vesting break in service - rule of parity ...................................................109
Vesting for pre-break and post-break account .........................................110
Amendment of vesting schedule ..............................................................111
Amendments affecting vested and/or accrued benefits ...........................111
TOP-HEAVY PROVISIONS ................................................................................112
Top-heavy definitions ..............................................................................112
Minimum allocation .................................................................................115
Nonforfeitability of minimum allocation .................................................117
Minimum vesting schedules ....................................................................117
DEATH BENEFITS ..............................................................................................118
Incidental insurance provisions ................................................................118
Distribution of insurance contracts ..........................................................119
Conflict with insurance contracts .............................................................119
INVESTMENT PROVISIONS .............................................................................120
Annual valuation of assets; allocation of trust earnings and losses .........120
Lifetime Income Investment Distributions ..............................................120
Diversification Requirements for Certain Defined Contribution
5 | D e f i n e d C o n t r i b u t i o n P l a n L R M P a c k a g e 0 1 / 2 0 2 4
Plans .........................................................................................................121
AMENDMENT AND TERMINATION ...............................................................123
Provider’s power to amend ......................................................................123
Amendment by adopting employer ..........................................................124
Vesting - plan termination .......................................................................125
Vesting - complete discontinuance of contributions ................................125
Plan merger - maintenance of benefit ......................................................125
MISCELLANEOUS PLAN PROVISIONS ..........................................................126
Inalienability of benefits ..........................................................................126
Loans to participants ................................................................................127
Exclusive benefit ......................................................................................135
Treatment of insurance dividends and other credits, fully insured plans .........................................................................................................136
Failure of qualification .............................................................................136
Conflicting Trust Provisions ....................................................................137
RESERVED .............................................................................................138
Crediting service with predecessor employer ..........................................138
RESERVED .............................................................................................138
Additional Adoption Agreement requirements ........................................138
USERRA - Military Service Credit .........................................................139
86A. Multiple employer plans ..........................................................................140
PART II - STANDARDIZED PLAN PROVISIONS ...............................................144
Coverage ..................................................................................................144
Eligibility requirements not more favorable for highly compensated .............................................................................................145
Contribution / Allocation formula ...........................................................146
Reliance on Opinion Letter ......................................................................146
PART III - NONSTANDARDIZED PLAN PROVISIONS .....................................147
Minimum age and service ........................................................................147
Reliance on Opinion Letter ......................................................................148
Election of total compensation.................................................................148
6 | D e f i n e d C o n t r i b u t i o n P l a n L R M P a c k a g e 0 1 / 2 0 2 4
Profit-sharing plan – Cross-tested allocation formula .............................148
Contribution / Allocation formula ...........................................................151
APPENDIX – REDLINED VERSION SHOWING CHANGES ..............................152
7 | D e f i n e d C o n t r i b u t i o n P l a n L R M P a c k a g e 0 1 / 2 0 2 4
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