Combined Plan Limits and Correction Clause Samples
The Combined Plan Limits and Correction clause sets out rules for how contribution or benefit limits are applied when an individual participates in more than one retirement or benefit plan sponsored by the same employer. It typically ensures that the total contributions or benefits across all applicable plans do not exceed legal or plan-imposed maximums, and outlines procedures for correcting any excesses, such as refunding contributions or reallocating benefits. This clause is essential for maintaining compliance with regulatory limits and preventing inadvertent over-contributions, thereby protecting both the employer and employees from potential tax penalties or plan disqualification.
Combined Plan Limits and Correction. If a Participant has also participated in a defined benefit plan maintained by a Related Company, the sum of the Defined Benefit Fraction and the Defined Contribution Fraction for any Plan Year may not exceed 1.0. If the combined fraction exceeds 1.0 for any Plan Year, the Participant's benefit under any defined benefit plan (to the extent it has not been distributed or used to purchase an annuity contract) shall be limited so that the combined fraction does not exceed 1.0 before any defined contribution limits will be enforced.
Combined Plan Limits and Correction. The sum of a Participant's Defined Benefit Fraction and Defined Contribution Fraction for any Plan Year may not exceed 1.0. If the combined fraction exceeds 1.0 for any Plan Year, the Participant's benefit under any defined benefit plan (to the extent it has not been distributed or used to purchase an annuity contract) shall be limited so that the combined fraction does not exceed 1.0 before any defined contribution limits shall be enforced. For Plan Years commencing after December 31, 1999, the provisions of the preceding paragraph shall no longer be effective.
Combined Plan Limits and Correction. If a Participant has also participated in a defined benefit plan maintained by a Related Company, the sum of the Defined Benefit Fraction and the Defined Contribution Fraction for any Plan Year may not exceed 1.0. If the combined fraction exceeds 1.0 for any Plan Year, the Participant's benefit under any defined benefit plan (to the extent it has not been distributed or used to purchase an annuity contract) shall be limited so that the combined fraction does not exceed 1.0 before any defined contribution limits will be enforced. For Plan Years commencing after December 31, 1999, the provisions of the preceding paragraph shall no longer be effective. 40 47
Combined Plan Limits and Correction. If a Participant has also participated in a defined benefit plan maintained by a Related Company, the sum of the Defined Benefit Fraction and the Defined Contribution Fraction for any Plan Year may not exceed 1.0. If the combined fraction exceeds 1.0 for any Plan Year, the Participant's benefit under any defined benefit plan (to the extent it has not been distributed or used to purchase an annuity contract) shall be limited so that the combined fraction does not exceed 1.0 before any defined contribution limits shall be enforced. -------------------------------------------------------------------------------- 48 55
14.1 Top Heavy Definitions When capitalized, the following words and phrases have the following meanings when used in this Section: