Minimum Allocation Gateway. Any allocation of contributions under either the Participant Group Allocation Method or the Age Weighted Allocation Formula must satisfy the minimum allocation gateway: Each eligible NHCE must have an allocation rate that is not less than the lesser of 5%, or one-third of the allocation rate of the HCE with the highest allocation rate. An allocation rate is the amount of contributions allocated to an Employee for a year, expressed as a percentage of Compensation, as defined in section 14.39 of the Plan.
Appears in 3 contracts
Sources: Individual 401(k) Plan Purchase Agreement, Employer Sponsored Plan Account Agreement, Employer Sponsored Plan Account Agreement