Definition of Catch-Up Deferral Sample Clauses
The Definition of Catch-Up Deferral clause establishes the meaning and parameters of "catch-up deferrals" within a retirement or savings plan context. Typically, this clause specifies that eligible participants—often those aged 50 or older—may contribute additional amounts beyond standard contribution limits to make up for previous years when they could not contribute the maximum. By clearly defining who qualifies and how much extra can be contributed, the clause ensures participants understand their rights and options, thereby promoting compliance with legal limits and maximizing retirement savings opportunities.
Definition of Catch-Up Deferral. A Catch-Up Deferral is an Elective Deferral by a Catch-up Eligible Participant and which exceeds: (a) a Plan limit on Elective Deferrals under Section 3.02(A); (b) the Annual Additions Limit under Section 4.05(B); (c) the Elective Deferral Limit under Section 4.10(A); or (d) the ADP Limit under Section 4.10(B).