Enhanced QACA Contribution Clause Samples
The Enhanced QACA Contribution clause defines the employer's obligation to make higher automatic contributions to employees' retirement accounts under a Qualified Automatic Contribution Arrangement (QACA). Typically, this clause specifies increased default contribution rates or matching formulas that exceed the minimum legal requirements, applying to eligible employees who do not opt out or make their own elections. Its core function is to encourage greater employee participation and savings in retirement plans while ensuring the plan meets or exceeds regulatory standards for safe harbor status.
Enhanced QACA Contribution. The Employer will make a QACA Matching Contribution to the Account of each Eligible Participant in an amount equal to (must be at least as generous as the Basic QACA Matching Contribution): % of the first % of the Eligible Participant's Plan Compensation contributed as Pre-Tax Contributions or ▇▇▇▇ Contributions, as applicable, % of the next % of the Eligible Participant's Plan Compensation contributed as Pre-Tax Contributions or ▇▇▇▇ Contributions, as applicable, and % of the next % of the Eligible Participant's Plan Compensation contributed as Pre-Tax Contributions or ▇▇▇▇ Contributions. as applicable, and shall be accrued based upon (select one): ¨ (i) each payroll period. ¨ (ii) the Plan Year.
Enhanced QACA Contribution. The Employer will make a QACA Matching Contribution to the Account of each Eligible Participant in an amount equal to (must be at least as generous as the Basic QACA Matching Contribution): ____% of the first ____% of the Eligible Participant's Plan Compensation contributed as Pre-Tax Contributions or ▇▇▇▇ Contributions, as applicable, ____% of the next ____% of the Eligible Participant's Plan Compensation contributed as Pre-Tax Contributions or ▇▇▇▇ Contributions, as applicable, and ____% of the next ____% of the Eligible Participant's Plan Compensation contributed as Pre-Tax Contributions or ▇▇▇▇ Contributions, as applicable, and shall be accrued based upon (select one): ¨ (i) each payroll period. ¨ (ii) the Plan Year.