QACA And EACA Notice Requirements. Within a reasonable period prior to the beginning of each Plan Year, each Employee covered by a QACA or an EACA must receive a notice explaining the Employee’s rights and obligations under the arrangement. The notice must be sufficiently accurate and comprehensive to inform the Employee of such rights and obligations by being written in a manner that is understandable by the average Employee to whom the arrangement applies and remain in effective for an entire twelve (12) month Plan Year. The reasonable time requirement is satisfied if the Employer provides such notice at least thirty (30) days and no more than ninety (90) days before the beginning of the Plan Year. In the case of an Employee who becomes eligible after the 90th day before the beginning of the Plan Year, the timing requirement is satisfied if the notice is provided no more than ninety (90) days before the Employee becomes eligible for the cash or deferred arrangement (and no later than the date the Employees becomes a Participant. However, if it is not practicable for the notice to be provided on or before this date, the notice must be provided as soon as practicable after that date and the Employee is permitted to elect to defer from all types of Compensation that may be deferred under the Plan earned beginning on that date). The Plan shall comply with all applicable notice requirements as specified under the Regulations as may be amended from time to time. The notice must explain the Employee’s right under the arrangement to elect not to have Elective Deferrals made on the Employee’s behalf or to elect to have contributions made in a different amount, and how contributions made under the arrangement will be invested in the absence of any affirmative investment election by the Employee. The Employee must be given a reasonable period of time after receipt of such notice and before the first Elective Deferral is made to make the election with respect to contributions and investments. A QACA will not permit the Plan to make any default Elective Deferral effective any later than the earlier of (A) the pay date for the second payroll period that begins after the date the notice is provided; and (B) the first pay date that occurs at least thirty (30) days after the notice is provided. If an Employer fails to provide a timely notice, the Plan will not be a QACA for the affected Plan Year and an EACA will not be eligible to use the ninety (90) day withdrawal provision and the six (6) month extensi...
