Annual Contribution Limits Sample Clauses
The Annual Contribution Limits clause sets a maximum amount that can be contributed to a specific account or plan within a given year. Typically, this clause outlines the dollar cap for contributions, which may be adjusted periodically based on regulations or inflation, and specifies whether the limit applies to individual or combined contributions from multiple sources. Its core practical function is to ensure compliance with legal or policy requirements, prevent excessive funding, and maintain the intended tax or regulatory status of the account or plan.
Annual Contribution Limits. The aggregate amount contributed into a Participant’s 403(b) Account for any year shall not exceed the amount permitted under section 415(c) of the Code based on the Participant’s most recent period of service determined under section 403(b)(3) of the Code. If any Employer Contributions cause a Participant’s 403(b) Contract to exceed the annual contribution limitation of section 415(c)(1) of the Code, the excess contributions shall be segregated and treated in a manner consistent with applicable IRS guidance on excess “annual additions.”
Annual Contribution Limits