Return of Employer Contribution Sample Clauses
The Return of Employer Contribution clause outlines the conditions under which contributions made by an employer, such as to a retirement or benefit plan, may be returned to the employer. Typically, this clause specifies scenarios like overpayments, failure to meet eligibility requirements, or plan disqualification, detailing the process for reclaiming such funds. Its core function is to protect the employer from unintended or improper contributions, ensuring compliance with legal and plan requirements while preventing financial loss.
Return of Employer Contribution. The Employer contributes to the Plan on the condition its contribution is not due to a mistake of fact and the Internal Revenue Service will not disallow the deduction for its contribution. The Trustee, upon written request from the Employer, must return to the Employer the amount of the Employer's contribution made by the Employer by mistake of fact or the amount of the Employer's contribution disallowed as a deduction under Code (S)404. The Trustee will not return any portion of the Employer's contribution under the provisions of this Paragraph (D) more than one year after:
(1) The Employer made the contribution by mistake of fact; or
(2) The disallowance of the contribution as a deduction, and then, only to the extent of the disallowance. The Trustee will not increase the amount of the Employer contribution returnable under this Paragraph (D) for any earnings attributable to the contribution, but the Trustee will decrease the Employer contribution returnable for any losses attributable to it. The Trustee may require the Employer to furnish it whatever
Return of Employer Contribution. The Employer contributes to the Plan on the condition its contribution is not due to a mistake of fact and the IRS will not disallow the deduction of the Employer Contribution.