Common use of Bifurcated Allocation Method Clause in Contracts

Bifurcated Allocation Method. Under the bifurcated allocation method, the entire earnings amount for the valua- tion periods ending before the date the corrective contribution or allocation is made is allocated solely to the account balance of the employee on whose behalf the corrective contribution or allocation is made. The earnings amount for the valu- ation period during which the corrective contribution or allocation is made is allo- cated in accordance with the plan’s method for allocating other earnings for that valuation period in accordance with section 3.01(4)(b). (See Example 25.)

Bifurcated Allocation Method. Under the bifurcated allocation method, the entire earnings amount for the valua- tion periods ending before the date the corrective contribution or allocation is made is allocated solely to the account balance of the employee on whose behalf the corrective contribution or allocation is made. The earnings amount for the valu- ation valua- tion period during which the corrective contribution or allocation is made is allo- cated in accordance with the plan’s method for allocating other earnings for that valuation period in accordance with section 3.01(4)(b). (See Example 2524.)