If you plan to run your 401k as a safe harbor plan, please indicate any relevant safe harbor employer contributions at item 32 of this order form and DO NOT include your safe harbor contribution
formula(s) herein under item 27 Employer Contributions. (click for more
Your company can contribute to plan participants' accounts in any of three ways:
(1) regular matching contributions,
(2) discretionary employer contributions, and/or
(3) qualified nonelective contributions.
Regular matching contributions (RMCs) are defined in terms of participant's elective contribution (e.g., 50¢ contributed by the employer for each dollar contributed by the plan participant). Discretionary employer contributions
(DECs) are basically profit-sharing contributions, although the employer's contribution does not have to be limited to net profits. Qualified nonelective contributions (QNECs) are allocated on the basis of compensation or some other
aside from a participant's elective contribution; they are made to ALL eligible employees regardless of whether or not the employee contributes to or participates in the 401k plan — unless the QNEC is being used to satisfy ADP or ACP test corrections. As for
vesting, RMCs and DECs can be subject to vesting schedules, but QNECs are always 100% vested to employees' accounts when made.
1) Will your company be making any REGULAR MATCHING CONTRIBUTIONS to employees' accounts?
AND our company (check one)
contribute an additional discretionary percentage, to be determined by our company.
2) Would your company like to have the option of being able to make DISCRETIONARY EMPLOYER CONTRIBUTIONS (i.e., profit-sharing contributions) to employees' accounts?
3) Would your company like to have the option of being able to make QUALIFIED NONELECTIVE CONTRIBUTIONS to employees' accounts?