Safe Harbor 401(k) Plan Notice with QDIA Notice (QACA Plan)
Summary
Use this Safe Harbor 401(k) Plan Notice with QDIA Notice (QACA Plan) to notify eligible participants about a qualified automatic contribution arrangement (QACA) safe harbor 401(k) plan. This template, which is based in part on the IRS’ Sample Automatic Enrollment and Default Investment Notice, includes practical guidance, drafting notes, and optional and alternate clauses. A safe harbor 401(k) plan provides for either an employer matching safe harbor contribution or an employer nonelective safe harbor contribution for each plan year to avoid certain nondiscrimination testing rules that apply otherwise to 401(k) plans. They may be designed as either a traditional safe harbor plan or as a qualified automatic contribution arrangement (QACA) safe harbor plan. Safe harbor plans that rely on employer matching contributions must furnish a notice to eligible employees in advance of their becoming eligible to participate and thereafter annually. By contrast, except as noted below, safe harbor ...