Operational Match Clause Samples

Operational Match. The Employer, to facilitate the Plan Administrator's correction of ACP test failures under Section 4.10(C), (or to lessen the degree of such failures), but only if the Plan is using Current Year Testing, may make Flexible Discretionary Match to the Plan ("Operational Match"), irrespective of whether the Employer in its Adoption Agreement has elected to provide for Flexible Discretionary Match. The Employer will provide to the Plan Administrator at the time of contribution written instructions for the allocation of the Operational Match. Allocation of any Operational Match will be limited to some or all NHCEs who are ACP Participants under Sections 4.11(A). The Operational Match may not be allocated in a manner to exceed the targeting limitations of Section 4.10(D). The Employer may allocate an Operational Match to any such NHCE Participants who are eligible to make (and who actually make) Elective Deferrals or Employee Contributions even if such Participants have not satisfied any eligibility conditions under Article II applicable to Matching Contributions or have not satisfied any allocation conditions under Section 3.06 applicable to Matching Contributions. Where the Plan Administrator disaggregates the Plan for coverage and for nondiscrimination testing under the "otherwise excludible employees" rule described in Section 4.06(C), the Employer also may limit the Operational Match allocation to those NHCEs in any disaggregated plan which actually is subject to ADP and ACP testing (because there are HCEs in that disaggregated plan). The Operational Match is subject to the instruction and notice provisions of Section 3.03(A)(2)(c).