Short Plan Year Sample Clauses
The Short Plan Year clause defines how a plan year is handled when it is shorter than a standard 12-month period, typically due to the plan's initial implementation, amendment, or termination. In practice, this clause specifies how benefits, contributions, and limits are calculated and prorated for the shortened period, ensuring that annual limits and requirements are adjusted accordingly. Its core function is to provide clarity and fairness in the administration of the plan during non-standard plan years, preventing confusion or inequity for participants and administrators.
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Short Plan Year. If a Participant’s allocation of any contribution, including Matching Contributions, is conditioned on the completion of a specified number of Hours of Service during a Plan Year, and if there is a Plan Year of fewer than 12 months, the specified number of Hours of Service required for such short Plan Year shall equal the product of the number of Hours of Service otherwise specified in the Adoption Agreement for contribution purposes multiplied by a fraction, the numerator of which is the number of months in the Short Plan Year and the denominator of which is 12.
Short Plan Year. An Employer's Plan may be a Safe Harbor 401(k) Plan in a short Plan Year: (a) as provided in Sections 3.05(I)(3) or (4), relating to the initial safe harbor Plan Year; (b) after the Final 401(k) Regulations Effective Date if the Employer creates a short Plan Year by changing its Plan Year, provided that the Employer maintains the Plan as a Safe Harbor 401(k) Plan in the Plan Years both before and after the short Plan Year as described in Treas. Reg. §1.401(k)-3(e)(3); or (c) after the Final 401(k) Regulations Effective Date if the short Plan Year is the result of the Employer's termination of the Plan under Section 3.05(I)(5).
Short Plan Year. If a determination period consists of fewer than 12 months, the limit on Annual Compensation (described in (F)) is an amount equal to the otherwise applicable Annual Compensation multiplied by a fraction, the numerator of which is the number of months in the short determination period, and the denominator of which is 12.
Short Plan Year. An Employer’s Plan may be a Safe Harbor 403(b) Plan in a short Plan Year: (a) as provided in Sections 3.05(I)(3) or (5), relating to the initial safe harbor Plan Year; (b) if the Employer creates a short Plan Year by changing its Plan Year, provided that the Employer maintains the Plan as a Safe Harbor 403(b) Plan in the Plan Years both before and after the short Plan Year as described in Treas. Reg. §1.401(k)-3(e)(3); or (c) if the short Plan Year is the result of the Employer’s termination of the Plan under Section 3.05(I)(6).
Short Plan Year. If a Participant first becomes a Participant after the first day of a Plan Year, the minimum Base Annual Salary and/or Annual Bonus deferral shall be an amount equal to the minimum set forth above, multiplied by a fraction, the numerator of which is the number of complete months remaining in the Plan Year and the denominator of which is 12.
Short Plan Year. With respect to any Plan Year except for the initial Plan Year (and coexistent Limitation Year) the duration of which is less than 12 consecutive months, the dollar limitation of Subparagraph 5.1(a)(i) for such Plan Year shall be determined by multiplying such dollar amount by a fraction, the numerator of which is the number of months (including fractional parts of a month) in the Plan Year, and the denominator of which is 12.
Short Plan Year. Any Plan Year that is less than 12 months long, either because of the amendment of the Plan Year, or because the Effective Date of a new Plan is less than 12 months prior to the end of the first Plan Year.