Sec. 206. Rules relating to election of safe harbor 401(k) status
481 words·~2 min read·
/bill/113/s/1270/is/section-206A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
401(k) status Subparagraph
(A)of section 401(k)(12) is amended by striking if such arrangement and all that follows and inserting “if such arrangement— meets the contribution requirements of subparagraph
(B)and the notice requirements of subparagraph (D), or meets the contribution requirements of subparagraph (C). . Subparagraph
(B)of section 401(k)(13) is amended by striking means and all that follows and inserting “means a cash or deferred arrangement— which is described in subparagraph (D)(i)(I) and meets the applicable requirements of subparagraphs
(C)through (E), or which is described in subparagraph (D)(i)(II) and meets the applicable requirements of subparagraphs
(C)and (D). . Section 401(k)(12) is amended by redesignating subparagraph
(F)as subparagraph (G), and by inserting after subparagraph
(E)the following new subparagraph: Except as provided in clause (ii), a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph
(C)shall apply to the arrangement for the plan year, but only if the amendment is adopted— at any time before the 30th day before the close of the plan year, or if the requirements of clause
(iii)are met, at any time before the last day under paragraph (8)(A) for distributing excess contributions for the plan year. Clause
(i)shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph
(B)applied to the plan year. Clause (i)(II) shall not apply to an arrangement unless the amount of the contributions described in subparagraph
(C)which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least 4 percent of the employee's compensation. . Section 401(k)(13) is amended by adding at the end the following : Except as provided in clause (ii), a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph (D)(i)(II) shall apply to the arrangement for the plan year, but only if the amendment is adopted— at any time before the 30th day before the close of the plan year, or if the requirements of clause
(iii)are met, at any time before the last day under paragraph (8)(A) for distributing excess contributions for the plan year. Clause
(i)shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph (D)(i)(I) applied to the plan year. Clause (i)(II) shall not apply to an arrangement unless the amount of the contributions described in subparagraph (D)(i)(II) which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least 4 percent of the employee's compensation. . The amendments made by this section shall apply to plan years beginning after December 31, 2013.