Additional alternative method of satisfying tests
(A) In general
(A)In general#
A defined contribution plan shall be treated as meeting the requirements of paragraph (2) with respect to matching contributions if the plan—
(i) meets the contribution requirements of subparagraph (B) or (C) of subsection (k)(12),
(ii) meets the notice requirements of subsection (k)(12)(D), and
(iii) meets the requirements of subparagraph (B).
(A)(i)#
meets the contribution requirements of subparagraph (B) or (C) of subsection (k)(12),
(A)(ii)#
meets the notice requirements of subsection (k)(12)(D), and
(A)(iii)#
meets the requirements of subparagraph (B).
(B)Limitation on matching contributions#
The requirements of this subparagraph are met if—
(i) matching contributions on behalf of any employee may not be made with respect to an employee’s contributions or elective deferrals in excess of 6 percent of the employee’s compensation,
(ii) the rate of an employer’s matching contribution does not increase as the rate of an employee’s contributions or elective deferrals increase, and
(iii) the matching contribution with respect to any highly compensated employee at any rate of an employee contribution or rate of elective deferral is not greater than that with respect to an employee who is not a highly compensated employee.
(B)(i)#
matching contributions on behalf of any employee may not be made with respect to an employee’s contributions or elective deferrals in excess of 6 percent of the employee’s compensation,
(B)(ii)#
the rate of an employer’s matching contribution does not increase as the rate of an employee’s contributions or elective deferrals increase, and