Nonforfeitable Accrued. Benefit Not Exceeding #3500 When a separate participants vested balance does not exceed $3500, the plan allows the employer to separately establish the timing of these distributions, separate from the distribution dates. When you complete this section, you need to balance two concerns: 1) will the timing of the distribution cause the participant to consider it a "severance benefit" and therefore encourage separation from service and 2) the administrative concerns of carrying a non-active account in the plan. Disability - The plan allows you (the employer) to establish a different target payout date for disability distributions in options (f) and (h).
Nonforfeitable Accrued. Benefit Not Exceeding $3500. When a separated participants vested balance does not exceed $3500, the plan allows the employer to separately establish the timing of these distributions, separate from the distribution dates. When you complete this section, you need to balance two concerns: 1) will the timing of the distribution cause the participant to consider it a "severance benefit" and therefore encourage separation from service and 2) the administrative concerns of carrying a non-active account in the plan. Usually an employer chooses Option (a) and writes in "the first distribution date" of the "first" plan year beginning after the Participant's separation from service.
Nonforfeitable Accrued. Benefits Exceeds $3,500. See the elections under Section 6.03.
Nonforfeitable Accrued. Benefit subject to the qualified domestic relations order and to the portion of the Participant's Nonforfeitable Accrued Benefit not subject to that order.
