Common use of Maximum Annual Addition Clause in Contracts

Maximum Annual Addition. All contributions to the Plan are subject to the limitations of Section 415 of the Code, which are incorporated herein by reference. The maximum "Annual Addition" credited to a Participant's Account during any Limitation Year shall not exceed the lesser of (a) $30,000, as Adjusted (or, if greater, 25% of the dollar limitation in effect under Section 415(b)(1)(A) of the Code ($90,000, as Adjusted)), or (b) 25% of the Participant's compensation (as defined below) from the Employer and all Affiliates during the Limitation Year. For purposes of Sections 4.3 and 4.4, the term 'compensation' shall mean wages as reported for purposes of federal income tax on Form W-2 and in addition, effective January 1, 1998, elective deferrals as defined in Section 402(g)(3) of the Code and salary reduction contributions of the Participant not includible in his or her gross income by reason of Section 125 of the Code.