qualified salary reduction arrangement

(A)For purposes of this subsection, the term “qualified salary reduction arrangement” means a written arrangement of an eligible employer under which— (i)an employee eligible to participate in the arrangement may elect to have the employer make payments— (I)as elective employer contributions to a simple retirement account on behalf of the employee, or (II)to the employee directly in cash, (ii)the amount which an employee may elect under clause (i) for any year is required to be expressed as a percentage of compensation and may not exceed a total of the applicable dollar amount for any year, (iii)the employer is required to make a matching contribution to the simple retirement account for any year in an amount equal to so much of the amount the employee elects under clause (i)(I) as does not exceed the applicable percentage of compensation for the year, and (iv)no contributions may be made other than contributions described in clause (i) or (iii). (B) (i)An employer shall be treated as meeting the requirements of subparagraph (A)(iii) for any year if, in lieu of the contributions described in such clause, the employer elects to make nonelective contributions of 2 percent of compensation for each employee who is eligible to participate in the arrangement and who has at least $5,000 of compensation from the employer for the year. If an employer makes an election under this subparagraph for any year, the employer shall notify employees of such election within a reasonable period of time before the 60-day period for such year under paragraph (5)(C). (ii)The compensation taken into account under clause (i) for any year shall not exceed the limitation in effect for such year under section 401(a)(17). (C)For purposes of this subsection— (i)


26 USC § 408(p)(2)(A)

Scoping language

None: Default is title Scope
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