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Posted

I'm new to 401K's and was hoping to get some confirmation or correction on a plan design.

I understand that the 3% SH nonelective contribution must be immediately 100% vested. My question is, if the plan also has a QACA does that remove the 100% immediate vesting requirement and change it to a 2 year cliff requirement?

Thank you for any guidance.

Posted

Thank you Bill! It would seem that with the new requirement from Secure that new plans have an ACA, many new 401Ks might as well use a QACA to avoid the 100% vesting on the 3% nonelective contribution.

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