EMPLOYEE CONTRIBUTION PROVISIONS 36. Nondeductible voluntary employee contributions

Statement of Requirement: Reg. §§ Treas. Regs. 1.401(k)-3(c)(6)(v); 1.401(m)- 1(a)(3)(i)

Document Provision: _____

(Note to reviewer: A Standardized Pre-approved Plan may not provide for nondeductible voluntary employee contributions. A Nonstandardized Pre-approved Plan may provide for nondeductible voluntary employee contributions. For years in which a plan has accepted (or currently accepts) voluntary contributions, the plan must include the applicable provisions of the CODA LRM relating to the requirements of Code §I RC 401(m).)

(Note to reviewer: LRMs #37 and #38 are required if the plan previously accepted (or currently accepts) nondeductible voluntary employee contributions.)

(Note to reviewer: Effective January 1, 2020 (or earlier if elected by the employer), a defined benefit plan that accepts nondeductible voluntary contributions may no longer

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suspend or preclude an employee from making voluntary contributions on account of having taken a hardship distribution from a §a n IRC 401(k) plan of the employer. See Treas. Reg. § 1.401(k)-3(c)(6)(v) after amendment on September 23, 2019 by T.D. 9875 , 2019-41 I.R.B. 856. An employer could elect to eliminate an existing employee’s suspension effective with the issuance of proposed regulations on November 14, 2018. Whether effective on January 1, 2020, or made effective earlier, if plan provisions preclude employee contributions on account of hardship, an interim amendment is required no later than December 31, 2021. See Rev. Proc. 2020-9 , 2020-02 I.R.B. 294. )