Plan Provision. Mandatory Cash-out Rule x For Plan Years beginning after August 9, 1997, the $3,500 cash-out limit is increased to $5,000.
Plan Provision. Nondiscrimination Testing The Small Business Job Protection Act permits the Employer to use the ADP and/or ACP of Non-Highly Compensated Employees for the prior year or current year in determining whether the plan satisfied the nondiscrimination tests. Employers who adopt this Prototype Plan must use the same testing method for both the ADP and ACP tests for Plan Years beginning on or after the date the Employer adopts this GUST-restated Plan. This restriction does not apply with respect to Plan Years beginning before the date the Employer adopts this GUST-restated plan.
Plan Provision. First Plan Year Testing Elections For a new 401(k) Plan, the Employer could use either the current or prior year testing methods as well as a rule that deems the prior year ADP/ACP to be 3%.
Plan Provision. Family Aggregation Did the Pre-SBJPA Family Aggregation rules of Code Sections 401(a)(17)(a) and 414(q)(6), both in effect for Plan Years beginning before January 1, 1997, continue to apply for any purpose for Plan Years beginning after 1996? x No ¨ Yes; explain the application: ____________________________________________________________________________ If this rule was subsequently discontinued, indicate when rule no longer applied: Employers who adopt this Prototype Plan may not elect to continue to apply the pre-SBJA Family Aggregation rules.
Plan Provision. Combined Plan Limit of Code Section 415(e) Did the Employer maintain a Defined Benefit Plan prior to January 1, 2000? ¨ Yes x No Did the Plan continue to apply the combined Plan limit of Code Section 415(e) (as in effect for Limitation Years beginning before January 1, 2000) in limitation years beginning after December 31, 1999, to the extent that such election conforms to the Plan’s operation? ¨ Yes ¨ No If yes, specify provisions below that will satisfy the 1.0 limitation of Code Section 415(e). Such language must preclude Employer discretion. The Employer must also specify the interest and mortality assumptions used in determining Present Value in the Defined Benefit Plan. Employers who adopt this Prototype Plan may not elect to continue to apply the combined Plan limit of Code Section 415(e) in years beginning after the date the Employer adopts its GUST-related Plan.
Plan Provision. Distribution Alternatives For Participants Who Are Not A More Than 5% Owner Select (A), (B), (C) and/or (D), whichever is applicable. Subsection (D) must be selected to the extent that there would otherwise be an elimination of a pre-retirement age 70 1/2 distribution option for Employees other than those listed above.
Plan Provision. Hardship Distributions Treated as Eligible Rollover Distributions The Employer had the option with respect to Hardship distributions made after December 31, 1998 to treat as eligible rollover distributions, or to delay the Effective Date until January 1, 2000. Hardship distributions were not treated as eligible rollover distributions effective as of: ¨ January 1, 1999 x January 1, 2000 ¨ Other (specify date):
Plan Provision. Highly Compensated Employees For Plan Years beginning after 1996, the Employer may elect a "Top-Paid Group" election and the Calendar Year Data election to determine the definition of Highly Compensated Employee:
Plan Provision. Suspension of Loan Repayments On or after December 12, 1994, did the Employer permit the suspension of loan repayments due to qualified military leave? [ ]Yes[ ]No Effective Date:
Plan Provision. DISTRIBUTION ALTERNATIVES FOR PARTICIPANTS WHO ARE NOT A MORE THAN 5% OWNER
