Effective for Plan Years beginning Clause Samples

Effective for Plan Years beginning before January 1, 1997, in the case of a Highly Compensated Employee who is either a 5% owner or one of the ten most highly compensated Employees and is thereby subject to the family unit member aggregation rules of Section 414(q)(6) of the Code, the ACP for the family unit group (which is treated as one Highly Compensated Employee) is the ACP determined by combining the contributions and compensation of all eligible Employee family unit members. Except to the extent taken into account in the preceding sentence, the contributions and compensation of all family unit members are disregarded in determining the ACPs for the group of Highly Compensated Employees and non-Highly Compensated Employees.

Effective for Plan Years beginning. ON OR AFTER AUGUST 1, 1997, SECTION

Effective for Plan Years beginning before January 1, 2006, in the case of a Plan which is intended to be a cash or deferred arrangement within the meaning of Section 401(k) of the Code, notwithstanding the foregoing other than clause (iii), except as provided in ARTICLE IX, the non-forfeitable Accrued Benefit of a Participant shall not commence to be paid before the earlier of: (A) The date such Participant ceases to be employed by the Employer by reason of death, disability, retirement, or other severance from employment within the meaning of Section 401(k) of the Code (regardless of when the severance from employment occurred). (For this purpose, cessation of employment in connection with a sale of less than substantially all the assets used in a trade or business where no Plan assets are transferred to the acquiring employer’s qualified plan will be deemed a separation from service), or (B) The date of termination of the Plan without the establishment of a successor plan as determined for purposes of Section 401(k) of the Code (which term generally means any other defined contribution (other than an employee stock ownership plan as defined in Section 4975(e)(7) of the Code) maintained by the Employer which is in existence at the date of termination of the Plan or established within the 12-month period after all benefits under the Plan are distributed, provided that such a defined contribution plan maintained by an employer which is not but becomes an Affiliate after the date of termination of the Plan shall be disregarded for this purpose unless the Employer knew or had reason to know that such unrelated employer would become an Affiliate.) Clause (v)(B) of this subparagraph shall not apply unless the distribution occurring by reason of an event described therein is a Lump Sum Payment (as defined in paragraph 8.4).

Effective for Plan Years beginning after December 31, 1996, the Employer hereby elects to use the prior Plan Year's Actual Deferral Percentage for all Eligible Participants who are Nonhighly Compensated Employees. Hence, when applying the primary and alternative limitations above, the Employer will use the Actual Deferral Percentage of the Eligible Participants who are Nonhighly Compensated Employees for the prior Plan Year. This election may be changed only as permitted by the Secretary of Treasury."