Common use of Safe Harbor Method Clause in Contracts

Safe Harbor Method. Effective for Plan Years beginning on and after July 1, 2006, the Plan shall utilize the safe harbor method of satisfying (i) the “actual deferral percentage” test, set forth in Section 401(k)(3) of the Code pursuant to Section 401(k)(12) of the Code and Internal Revenue Service Notice 98-52, and (ii) the “actual contribution percentage” test set forth in Section 401(m)(2) of the Code pursuant to Section 401(m)(11) of the Code and Internal Revenue Service guidance issued thereunder. Such testing shall meet the contribution requirements of Section 401(k)(12)(B) of the Code and shall utilize the current year testing method as such term is defined in Internal Revenue Service Notice 98-1. Prior to any Plan Year in which the Plan will utilize the safe harbor method, the Employer will give each Eligible Employee written notice that is: (i) sufficiently accurate and comprehensive to inform the Eligible Employee of his rights and obligations under the Plan; and (ii) written in a manner calculated to be understood by the average Eligible Employee. Such notice will accurately describe (A) the safe harbor matching or nonelective contribution formula used under the Plan (including a description of the levels of matching contributions, if any, available under the Plan); (B) any other contributions under the Plan (including the potential for discretionary matching contributions) and the conditions under which such contributions are made (if different than the Plan); (C) the type and amount of compensation that may be deferred under the Plan; (D) how to make cash or deferred elections, including any administrative requirements that apply to such elections; (E) the periods available under the Plan for making cash or deferred elections; and (F) withdrawal and vesting provisions applicable to contributions under the Plan. The notice described in this Section 4.6(a) will be delivered to Eligible Employees at least 30 days (and no more than 90 days) before the beginning of each Plan Year or, in the year an Employee first becomes eligible to participate in the Plan, no more than 90 days before the employee becomes eligible (and no later than the date the employee becomes eligible).