Integrated Allocation Formula Clause Samples

Integrated Allocation Formula. If the Employer has selected the integrated allocation formula in the Adoption Agreement, then Employer Contributions for the Plan Year will be allocated to Participants' IRA as follows: Step 1 Employer Contributions will be allocated to each Participant's IRA in the ratio that each Participant's total Compensation bears to all Participants' total Compensation, but not in excess of 3% of each Participant's Compensation. Step 2 Any Employer Contributions remaining after the allocation in Step 1 will be allocated to each Participant's IRA in the ratio that each Participant's Compensation for the Plan Year in excess of the integration level bears to the Compensation of all Participants in excess of the integration level, but not in excess of 3%. Step 3 Any Employer Contributions remaining after the allocation in Step 2 will be allocated to each Participant's IRA in the ratio that the sum of each Participant's total Compensation and Compensation in excess of the integration level bears to the sum of all Participants' total Compensation and Compensation in excess of the integration level, but not in excess of the maximum disparity rate described in the table below. Step 4 Any Employer Contributions remaining after the allocation in Step 3 will be allocated to each Participant's IRA in the ratio that each Participant's total Compensation for the Plan Year bears to all Participants' total Compensation for that Plan Year. The integration level shall be equal to the Taxable Wage Base or such lesser amount elected by the Employer in the Adoption Agreement. Integration Level Maximum Disparity Rate ----------------- ---------------------- Taxable Wage Base (TWB) 2.7% More than $0 but not more than X* 2.7% More than X* of TWB but not more than 80% of TWB 1.3% More than 80% of TWB but not more than TWB 2.4% *X mean the greater of $10,000 or 20% of TWB.

Integrated Allocation Formula. If an integrated formula is specified in the Adoption Agreement, the allocation will be made as follows: STEP ONE: Contributions will be allocated to each Participant’s SEP-▇▇▇ in the ratio that the Participant’s total Compensation bears to all Participants’ total Compensation, but not in excess of 3% of the Participant’s Compensation.

Integrated Allocation Formula. (Complete only if integrated basis is selected in 31(a) above.)

Integrated Allocation Formula