Common use of Applicable Amount Clause in Contracts

Applicable Amount. The applicable amount is determined under (1) or (2) below: 1) If the owner is under age 50, the applicable amount is: • $3,000 for any taxable year beginning in 2002 through 2004; • $4,000 for any taxable year beginning in 2005 through 2007; and • $5,000 for any taxable year beginning in 2008 and years thereafter. 2) If the owner is 50 or older, the applicable amount is: • $3,500 for any taxable year beginning in 2002 through 2004; • $4,500 for any taxable year beginning in 2005; • $5,000 for any taxable year beginning in 2006 through 2007; and • $6,000 for any taxable year beginning in 2008 and years thereafter. VM-YR-▇▇▇▇▇ ▇▇▇ (07) Contract Number: [C1234567 ] After 2008, the limits in (ii)(1) and (2) above will be adjusted by the Secretary of the Treasury for cost-of-living increases under IRC Section 219(b)(5)(D). Such adjustments will be in multiples of $500. If the individual was a participant in a 401(k) plan of a certain employer in bankruptcy described in IRC Section 219(c)(5)(C), then the applicable amount under (1) above is increased by $3,000 for the taxable years beginning after 2006 and before 2010 only. An individual who makes contributions under this paragraph may not also make contributions under (2) above.

Applicable Amount. The applicable amount is determined under (1) or (2) below: 1) If the owner is under age 50, the applicable amount is: • $3,000 for any taxable year beginning in 2002 through 2004; • $4,000 for any taxable year beginning in 2005 through 2007; and • $5,000 for any taxable year beginning in 2008 and years thereafter. 2) If the owner is 50 or older, the applicable amount is: • $3,500 for any taxable year beginning in 2002 through 2004; • $4,500 for any taxable year beginning in 2005; • $5,000 for any taxable year beginning in 2006 through 2007; and • $6,000 for any taxable year beginning in 2008 and years thereafter. VM-YR-▇▇▇▇▇ ▇▇▇ (07) Contract Number: [C1234567 ] After 2008, the limits in (ii)(1) and & (2) above will be adjusted by the Secretary of the Treasury for cost-of-living increases under IRC Section 219(b)(5)(D). Such adjustments will be in multiples of $500. If ▇▇-▇▇-▇▇▇ (07) page YI-1 Contract Number: [C1234567 ] In addition to the amounts described above, an individual who was a participant in a 401(k) plan of a certain employer in bankruptcy described in IRC Section 219(c)(5)(C), then the applicable amount under (1219(b)(5)(C) above is increased by may contribute up to $3,000 for the taxable years beginning after 2006 and before 2010 only. An individual who makes contributions under this paragraph may not also make contributions under (2ii)(2) above.