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Retirement Planning
Chapter 5: Profit-Sharing Plans/QUALIFIED AUTOMATIC CONTRIBUTION ARRANGEMENT
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Chapter 5: Profit-Sharing Plans

QUALIFIED AUTOMATIC CONTRIBUTION ARRANGEMENT

01.Core Concepts

(QACA) (2 OF 2) Automatic Deferral: Max is 15% after 2019 (SECURE Act) • Year 1 At least 3% • Year 2 At least 4% • Year 3 At least 5% • Year 4+ At least 6% • Matching Contribution or Nonelective Contribution of 3% • ER match (NHC): 100% up to 1% plus 50% between 2% - 6% • ER rate of match (for elective deferrals) for HC is not greater than for NHC. • Vesting – 2-year cliff