Common use of Contribution Allocation Clause in Contracts

Contribution Allocation. Part I - Matching Contributions. Select which account you want the matching contributions to be allocated to. The Regular Matching Account is subject to a vesting schedule. The Qualified Matching Account is always 100% vested and contributions may be used to satisfy the deferral non-discrimination test. Qualified Non-elective Contributions. Choose which participants would receive an extra contribution to help satisfy the non-discrimination test for deferrals (QNEC). For administrative convenience opton (2) is chosen.

Contribution Allocation. Part I - Matching Contributions. Select which account you want the matching contributions to be allocated to. The , the Regular Matching Account is subject to a vesting schedule. The Qualified Matching Account is always 100% vested and contributions may be used to satisfy the deferral non-discrimination test. Qualified Non-elective Contributions. Choose which participants would receive an extra contribution to help satisfy the non-discrimination test for deferrals (QNEC). For administrative convenience opton (2) is chosen.