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Article: IRS Issues Final Regulations On Automatic Contribution Arrangements.
- Article from:
- Mondaq Business Briefing
- Article date:
- April 30, 2009
CopyrightCOPYRIGHT 2009 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Employers that are contemplating or currently provide a QACA or EACA plan should review their plan documents and administrative processes for compliance with these final regulations.
The Internal Revenue Service issued final regulations on qualified automatic contribution arrangements (QACAs) under Section 401(k)(13) of the tax code and eligible automatic contribution arrangements (EACA) under Section 414(w) of the tax code. QACAs and EACAs are two types of automatic contribution arrangements created under the Pension Protection Act of 2006. Under an automatic contribution arrangement, a participant is automatically enrolled in the Section 401(k) plan at a ...