39. Deductible voluntary employee contributions

Statement of Requirement: Code§I RC 219

Document Provision: _____

(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. Prior contributions will be maintained in a

241 | Defined Benefit Plan LRM Package 08/2020 06/2026

separate account which will be nonforfeitable at all times. The assets of the plan will be valued annually at fair market value as of the last day of the plan year. On such date, the earnings and losses of the plan attributable to accumulated deductible voluntary contributions will be allocated to each participant’s deductible voluntary contributions account in the ratio that such account balance bears to all such account balances. 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 Provider should insert the appropriate section of the plan which provides for joint and survivorship provisions in conformity with LRM #46.)