ADP Correction. The HCE with the highest Deferral percentage shall have his or her Deferral percentage reduced to the lesser of the extent required to meet the ADP Test or to cause his or her Deferral percentage to equal that of the HCE with the next highest Deferral percentage. The process shall be repeated until the ADP Test is met. To the extent an HCE's Deferrals were determined to be reduced as described in the paragraph above, Employee 401(k) Contributions shall, by the end of the next Plan Year, be refunded to the HCE in an amount equal to the actual Deferrals minus the product of the maximum percentage and the HCE's Compensation, except that such amount to be refunded shall be reduced by Employee 401(k) Contributions previously refunded because they exceeded the Contribution Dollar Limit.
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Sources: Employee Stock Savings Plan (La Gear Inc), Employee Stock Savings Plan (La Gear Inc)
ADP Correction. The HCE with the highest Deferral percentage shall have his or her Deferral percentage reduced to the lesser of the extent required to meet the ADP Test or on to cause his or her Deferral percentage to equal that of the HCE with the next highest Deferral percentage. The process shall be repeated until the ADP Test is met. To the extent an HCE's HCE"s Deferrals were determined to be reduced as described in the paragraph above, Employee 401(k) Pre-Tax Contributions shall, by the end of the next Plan Year, be refunded to the HCE in an amount equal to the actual Deferrals minus the product of the maximum percentage and the HCE's Compensation, except that such amount to be refunded shall be reduced by Employee 401(k) Pre- Tax Contributions previously refunded because they exceeded the Contribution Dollar Limit.. The excess amounts shall first be taken from unmatched Employee
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