Common use of Initial Elections Clause in Contracts

Initial Elections. If the Plan Sponsor has elected in the Adoption Agreement to allow a Participant to elect a separate form and timing of distribution for each Class Year Account under the Plan, the Participant shall elect the form and timing of payment of each Class Year Account at the time the Participant submits (or is required to submit, in accordance with Section 2.3 and Code § 409A) his or her Compensation Deferral Agreement for the Taxable Year for which the Class Year Account is established. If the Plan Sponsor has not elected in the Adoption Agreement to allow a Participant to elect a separate form and timing of distribution for each Class Year Account under the Plan, the Participant shall elect the form and timing of payment of his or her Account at the earlier of (a) the time the Participant submits (or is required to submit, in accordance with Section 2.3 and Code § 409A) his or her Compensation Deferral Agreement for the Taxable Year for which the Class Year Account is established, or (b) the December 31 preceding the Taxable Year in which the services giving rise to the Participant’s first Matching Credits or Discretionary Credits to be earned under the Plan are to be performed (unless a later date is permitted in accordance with the provisions of Code § 409A and Treas. Reg. § 1.409A- 2). If a Participant elects an in-service Interim Distribution Date, the Participant must make a new form and timing of payment election for Compensation Deferrals that may be credited to the Participant’s Account and for Matching Credits and/or Discretionary Credits that may be earned during and after the Taxable Year in which falls the in-service Interim Distribution Date. Such election (a) must be made prior to the beginning of the Taxable Year in which the services giving rise to the earliest Compensation Deferrals, Matching Credits or Discretionary Credits subject to the new form and timing of payment election are to be performed and (b) is subject to rules generally applicable to form and timing of payment elections under this Plan.