EX-99.B14(b)
PROTOTYPE NON-STANDARD 401(k) PROFIT SHARING PLAN ADOPTION AGREEMENT
The undersigned employer(s) - **SAVE UNDER client #.adp IN INSTITUION
0DIRECTORY**, hereinafter referred to as the "Employer", hereby adopts the
____________ PROTOTYPE NON-STANDARD FLEX 401(k) PROFIT SHARING PLAN AND TRUST.
The name of the Plan shall be ___________.
1. EMPLOYER TAX IDENTIFICATION NUMBER: ______________________________.
2. The EFFECTIVE DATE of the initial adoption of the Plan is _____ (usually
the first day of the Plan Year).
3. If this is an amendment of an existing plan, the EFFECTIVE DATE of the
amendment is __________
(usually the first day of the Plan Year).
4. The LAST DAY of the PLAN YEAR, ________ shall be the ANNIVERSARY DATE.
5. The ENTRY DATE(S) of the Plan:
5.1 / / Shall be the first day of each PLAN YEAR and the first day
of each quarter thereafter.
5.2 / / Shall be the first day of each PLAN YEAR and the first day
of the seventh month of each Plan Year.
5.3 / / Other ____________________________________
6. ELIGIBILITY REQUIREMENTS
6.1 CASH OR DEFERRED ARRANGEMENT: Each Employee except the following
shall be eligible to participate in the 401(k) Cash or Deferred
Arrangement, any Matching Contributions, any Qualified Matching
Contributions or any Qualified Non-elective Contributions in
accordance with Section 5 above. (Eligibility for participation in
any Discretionary Profit Sharing Contributions shall be determined in
Section 6.2 below).
a. / / Employees who have not attained the age of (cannot
exceed 21).
b. / / Employees who have not completed Year of Service
(cannot exceed 1 year). If the Year of Service selected is
or includes a fractional year, an Employee will not be
required to
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complete any specified Hours of Service to receive credit
for such fractional year.
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c. / / Employees included in a unit of Employees covered by a
collective bargaining agreement between the Employer and
Employee Representatives, if retirement benefits were the
subject of good faith bargaining SHALL NOT be eligible to
participate. For this purpose, the term "Employee
Representatives" does not include any organization more than
half of whose members are employees who are owners,
officers, or executives of the Employer.
d. / / Employees who are nonresident aliens (within the
meaning of Code section 7701(1)(B)) and who received no
earned income (within the meaning of Code section 911(d)(2))
from the Employer which constitutes income from sources
within the United States (within the meaning of Code section
861(a)(3)).
e. / / Employees included in the following job
classifications:
e.1. / / Hourly Employees
e.2 / / Salaried Employees
e.3 / / commissioned Sales Employees
e.4 / / Employees of the following Employers aggregated
under Code sections 414(b), 414(c) or 414(m)
e.5 / / Other _______________________________________
f. Unless otherwise elected by the Employer below, the requirements
for eligibility to participate of this section 6.1 shall apply to all
employees with no exceptions.
f.1 / / These requirements shall apply solely to an
Employee employed after _______. If an Employee was
employed on or before the specified date, he shall
become a participant immediately
f.2 / / The age and service requirement for eligibility to
participate shall be waived for individuals employed on
the Effective Date of this Adoption Agreement.
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6.2 DISCRETIONARY PROFIT SHARING CONTRIBUTION: Each Employee except the
following shall be eligible to participate in any Discretionary Profit
Sharing Contributions in accordance with Section 5 above.
a. / / Employees who have not attained the age of _____
(cannot exceed 21).
b. / / Employees who have not completed _____ Year of Service
(cannot exceed 1 year unless the Plan provides for 100%
vesting of this contribution). If the Year of Service
selected is or includes a fractional year, an Employee will
not be required to complete any specified Hours of Service
to receive credit for such fractional year.
c. / / Employees included in a unit of Employees covered by a
collective bargaining agreement between the Employer and
Employee Representatives, if retirement benefits were the
subject of good faith bargaining SHALL NOT be eligible to
participate. For this purpose, the term "Employee
Representatives" does not include any organization more than
half of whose members are employees who are owners,
officers, or executives of the Employer.
d. / / Employees who are nonresident aliens (within the
meaning of Code Section 7701(1)(B)) and who received no
earned income (within the meaning of Code Section 911(d)(2))
from the Employer which constitutes income from sources
within the United States (within the meaning of Code Section
861(a)(3)).
e. / / Employees included in the following job
classifications:
e.1 / / Hourly Employees
e.2 / / Salaried Employees
e.3 / / Commissioned Sales Employees
e.4 / / Employees of the following Employers aggregated
under Code Sections 414(b), 414(c) or 414(m)
e.5 / / Other _________________________________________
f. Unless otherwise elected by the Employer below, the requirements
for eligibility to participate of this Section 6.2 shall apply to
all employees with no exceptions.
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f.1 / / These requirements shall apply solely to an
Employee employed after ______. If an Employee was
employed on or before the specified date, he shall
become a participant immediately.
f.2 / / The age and service requirement for eligibility to
participate shall be waived for individuals employed on
the Effective Date of this Adoption Agreement.
7. COMPENSATION shall mean all of each Participant's:
7.1 / / W-2 earnings reported in the Wages, Tips, and Other
Compensation Box on Form W2.
7.2 / / Compensation (as that term is defined in Section 415(c)(3)
of the Code).
which is actually paid to the Participant during:
7.3 / / The Plan Year.
7.4 / / The calendar year ending with or within the Plan Year.
7.5 / / Other: (A period determined on the basis of any consecutive
monthly period ending within the Plan Year which is at least 12
months in duration and which is applied uniformly to all
Employees who are plan Participants).
7.6 / / Compensation shall include Employer contributions made
pursuant to a salary reduction agreement which are not includible
in the gross income of the employee under Sections 125,
402(a)(8), 402(h) or 403(b) of the Code.
7.7 / / Compensation shall not include Employer Contributions made
pursuant to a salary reduction agreement which are not includible
in the gross income of the employee under Section 125, 402(a)(8),
402(h) or 403(b) of the code
7.8 / / Compensation shall not include earnings paid prior to the
date the Employee became a plan Participant.
7.9 / / Compensation for determining the amount of the Salary
Deferral and Matching Contribution (if applicable) agreed to
between the Employer and Employee shall be determined as a
percentage of the Employee's Compensation except that
Compensation for the purpose of determining this percentage shall
not include the following:
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7.10 / / Criteria for hardship distributions are set forth in the
Plan.
8. NORMAL RETIREMENT AGE shall mean:
The later of age _____ (not to exceed age 65) or the _____ (not to exceed
5th) anniversary of the first day of the first Plan Year in which the
Participant commenced participation in the Plan. If no age is elected and
this section is left blank, Normal Retirement Age shall mean age 65.
9. VESTING
9.1 EMPLOYER MATCHING CONTRIBUTIONS: If a Participant terminates prior to
Normal Retirement Age he shall receive a percentage of his Accrued
Benefit derived from Matching Contributions according to the vesting
schedule checked below. Each Participant shall be 100% vested at all
times in his Elective Deferral Contributions, Qualified Matching
Contributions and Qualified Non-elective Contributions. Each
Participant shall vest in his share of any Discretionary Profit
Sharing Contributions according to the schedule determined in Section
9.2 below.
a. / / One hundred percent schedule - 100% at all times.
b. / / Twenty Percent Schedule - 20% after the second Covered
Year of Service and 20% for each additional year credited
thereafter, until 100% is reached at six years.
c. Variable Schedule:
Based on Covered Year of Service after Year:
1 _______ 3 _______ 5 _______ 7 _______ 100%
2 _______ 4 _______ 6 _______
This option c shall not be less favorable than the vesting schedules
contained in Internal Revenue Code Sections 411(a)(2)(A) and (B).
d. / / Years of Service for purposes of determining vesting
shall exclude Years of Service
d.1 / / prior to the Effective Date of this Plan or a
predecessor plan.
d.2 / / prior to the age of 18.
Note: Option b will automatically apply if and when this Plan shall
become top heavy provided that Option a has not been elected
and Option c is not at least as favorable as Option b.
If the vesting schedule under the Plan(s) shifts in or out of the
above vesting schedule for any Plan Year because of the Plan's top
heavy status, such shift is an
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amendment to the vesting schedule and the election in Section 1.4 of
the Plan applies.
Notwithstanding the above, the Accrued Benefit shall become fully
vested at Normal Retirement Age.
9.2 EMPLOYER DISCRETIONARY PROFIT SHARING CONTRIBUTIONS: If a Participant
terminates prior to Normal Retirement Age he shall receive a
percentage of his Accrued Benefit derived from Discretionary Profit
Sharing Contributions according to the vesting schedule checked
below. Each Participant shall be 100% vested at all times in his
Elective Deferral Contributions, Qualified Matching Contributions and
Qualified Non-elective Contributions.
a. / / One hundred percent schedule - 100% at all times.
b. / / Twenty Percent Schedule - 20% after the second Covered
Year of Service and 20% for each additional year credited
thereafter, until 100% is reached at six years.
c. / / Variable Schedule:
Based on Covered Year of Service after Year:
1 _______ 3 _______ 5 _______ 7 _______ 100%
2 _______ 4 _______ 6 _______
This option c shall not be less favorable than the vesting schedules
contained in Internal Revenue Code Sections 411(a)(2)(A) and (B).
d. / / Years of Service for purposes of determining vesting
shall exclude Years of Service
d.1 / / prior to the Effective Date of this Plan or a
predecessor plan.
d.2 / / prior to the age of 18.
Note: Option b will automatically apply if and when this Plan shall become
top heavy provided that Option a has not been elected and Option c
is not at least as favorable as Option b.
If the vesting schedule under the Plan(s) shifts in or out of the above
vesting schedule for any Plan Year because of the Plan's top heavy status,
such shift is an amendment to the vesting schedule and the election in
Section 1.4 of the Plan applies.
Notwithstanding the above, the Accrued Benefit shall become fully vested at
Normal Retirement Age.
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10. CONTRIBUTIONS
10.1 DISCRETIONARY PROFIT SHARING CONTRIBUTIONS: (vests according to
Section 9.2):
Employer Profit Sharing contributions under the Plan shall be made
solely at the discretion of the Employer pursuant to Section 4.1 of
the Plan, and shall be allowed up to the maximum amount specified in
Section 5.5 of the Plan. Unless elected otherwise below, Employer
contributions for Discretionary Profit Sharing shall be made without
regard to current or accumulated profits.
a. / / The Employer shall make this contribution ONLY if it
has earned current or accumulated profits.
b. / / Forfeitures of Employer Profit Sharing Contributions
shall be:
b.1 / / added to and allocated with the Employer's
contribution.
b.2 / / used to reduce the Employer's contribution.
c. ALLOCATION OF CONTRIBUTIONS: The Employer Profit Sharing
Contribution to the Plan will be allocated among the accounts of
Participants as of the Anniversary Date as follows:
c.1 / / The Employer shall not make this contribution on
behalf of a Participant who is not employed with the
Employer on the Anniversary Date, unless the
Participant terminated employment during the Plan Year
by reason of death, disability or retirement.
/ / The Employer shall not make this contribution on behalf
of a Participant who is not credited with:
c.1(a) / / more than 500 Hours of Service.
c.1(b) / / at least 1000 Hours of Service. If the
Plan fails to pass the participation or
coverage tests required under Code Sections
401(a)26 or 410(b) as a result of this Hours
of Service requirement, such requirement
shall be reduced to 501.
c.2 / / ALLOCATION BASED ON COMPENSATION: In the ratio
which each Participant's Compensation bears to the
Compensation paid to all Participants.
c.3 / / ALLOCATION UNDER PERMITTED DISPARITY RULES:
Employer Discretionary Contributions for the Plan Year
plus any forfeitures will be allocated to Participants'
accounts under the rules for
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Permitted Disparity. (As defined in Section 5.8 of the
Plan Document).
If the Plan is Top Heavy for the Plan Year (as defined in
Section 8 of the Plan document), begin at step c.3(a);
otherwise begin at step c.3(c).
c.3(a) Contributions and forfeitures will be allocated to
each Participant's account in the ratio that each
Participant's total Compensation bears to all
Participant's total Compensation, but not in
excess of 3% of each Participant's Compensation.
c.3(b) Any contributions and forfeitures remaining after
the allocation in c.3(a) above will be allocated
to each Participant's account in the ratio that
each Participant's Compensation for the Plan Year
in excess of the Integration level bears to the
Excess Compensation of all Participants, but not
in excess of 3% of each Participant's
Compensation.
c.3(c) Any contributions and forfeitures (remaining after
the allocation in c.3(b) above in the case of a
Top Heavy Plan) will be allocated to each
Participant's account in the ratio that the sum of
each Participant's total Compensation and
Compensation in excess of the Integration Level
bears to the sum of all Participants' total
Compensation and Compensation in excess of the
Integration Level, but not in excess of the
Maximum Disparity Rate.
c.3(d) Any remaining Employer contributions or
forfeitures will be allocated to each
Participant's account in the ratio that each
Participant's total Compensation for the Plan Year
bears to all Participants' total Compensation for
that year.
c.4 For purposes of section c.3(b) above: EXCESS COMPENSATION
SHALL MEAN COMPENSATION IN EXCESS:
c.4(a) / / of the Taxable Wage Base in effect as of
the beginning of the Plan Year.
c.4(b) / / of $__________ (a dollar amount less
than the Taxable Wage Base).
c.4(c) / / of _____% of the Taxable Wage Base (not
to exceed 100%).
10.2 ELECTIVE DEFERRALS (100% vested): A Participant may elect to have his
or her Compensation reduced by the following percentage per pay
period, or for a specified pay period or periods, as designated in
writing to the Plan Administrator. Unless elected otherwise below, the
Employer's contribution for Elective Deferrals shall be made without
regard to current or accumulated profits.
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The amount which may be elected shall not be in excess of _____
percent of a Participant's Compensation. Unless elected otherwise
below, a Participant's election regarding Elective Deferrals shall
apply to his cash bonuses.
a. A Participant may elect to commence Elective Deferrals as of
________ (i.e., each entry date). Such election shall become
effective as of the ____________ pay period following the pay
period during which the Participant's election to commence
Elective Deferrals was made, or as soon as administratively
feasible thereafter.
b. / / A Participant's election regarding Elective Deferrals
SHALL NOT apply to Cash Bonuses.
c. No Participant shall be permitted to have Elective Deferrals made
under this plan during any calendar year in excess of $7,000,
multiplied by the Adjustment Factor.
d. A Participant's election to have Elective Deferrals made pursuant
to a salary reduction agreement shall remain in effect until
modified or terminated.
e. / / The Employer shall make this contribution ONLY if it
has earned sufficient current or accumulated profits.
f. / / A Participant may modify the amount of Elective
Deferrals as of ________ (i.e., each entry date). Such
modification shall become effective as of the pay period
following the pay period during which the Participant's
election to modify Elective Deferrals was made, or as soon
as administratively feasible thereafter. A Participant may
CEASE Elective Deferrals at any time, effective with the
______ pay period following the pay period during which the
Participant's election to cease Elective Deferrals was made,
or as soon as administratively feasible thereafter.
11. QUALIFIED NON-ELECTIVE CONTRIBUTIONS (100% Vested)
11.1 / / The Employer may make Qualified Non-elective Contributions
to the plan in such amounts as determined by the Employer. The
contribution shall be 100% vested and treated as a deferral for
purposes of distribution. Employer contributions for Qualified
Non-elective Contributions shall be made without regard to
current or accumulated profits.
11.2 / / The Employer shall make this contribution ONLY if it has
earned current or accumulated profits.
11.3 If Qualified Non-elective Contributions are needed to meet the Actual
Deferral Percentage ("ADP") test described in Section 11.4 of the
Plan, such contribution shall be allocated as of the Anniversary Date
to the accounts of:
a. / / Non-highly compensated Participants
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b. / / ALL Non-Key and Non-highly Compensated Employees who
are Participants
c. / / All Participants
in the ratio that each such Participant's Compensation for the
Plan Year bears to the total Compensation of all such compensated
Participants for such Plan Year.
11.4 If Qualified Non-elective Contributions are made to the Plan for a
purpose other than to meet the Actual Deferral Percentage test
described in Section 11.4 of the Plan (i.e., to meet a minimum
contribution requirement under the top heavy rules), the contribution
shall be allocated among the accounts of:
a. / / Non-Key Participants and shall be made in the ratio in
which each Non-Key Participant's Compensation for the Plan
Year bears to the total Compensation of all Non-Key
Participants for such Plan Year.
b. / / all Participants and shall be made in the ratio in
which each Participant's Compensation for the Plan Year
bears to the total Compensation of all Participants for such
Plan Year.
12. QUALIFIED MATCHING CONTRIBUTIONS (100% Vested)
12.1. / / The Employer will make Qualified Matching Contributions
to the Plan on behalf of Participants defined below who
make Elective Deferrals, irrespective of their employment
status on the last day of the Plan Year. The contribution
shall be 100% vested and treated as a deferral for purposes
of distribution. Qualified Matching Contributions shall be
made without regard to current or accumulated profits.
a. / / all Participants who make Elective Deferrals.
b. / / all Non-highly compensated Participants who make
Elective Deferrals.
12.2 The amount of Qualified Matching Contributions made on behalf of each
such Participant shall be as specified below:
a. / / _____ percent of the Elective Deferral made for each
Plan Year.
b. The Employer shall not match Elective Deferrals as provided in a.
above in excess of $__________ or in excess of _____ percent of
the Participant's Compensation used for determining the amount of
the Participant's Salary Deferral as defined in Section 7 of this
Adoption Agreement.
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12.3 / / The Employer may make Qualified Matching Contributions from
time to time as it deems advisable, without regard to current or
accumulated profits. Such contribution shall be equal to a
specified percentage of the Participant's Elective Deferral,
provided the Employer may establish a limit on the amount of the
Elective Deferral which shall be matched by resolution or other
official statement. The limit shall be specified as either a
dollar amount or as a percentage of Compensation used for
determining the amount of the Participant's Salary Deferral as
defined in Section 7 of this Adoption Agreement. This
contribution shall be made on behalf of all individuals who
deferred during the Plan Year. The contribution shall be 100%
vested and treated as a deferral for purposes of distribution.
/ / Notwithstanding the above, the Employer shall not make a
Qualified Matching Contribution on behalf of a Participant who is
not employed with the Employer on the Anniversary Date,
regardless of credited Hours of Service, unless the Participant
terminated employment during the Plan Year by reason of death,
disability or retirement.
/ / Notwithstanding the above, the Employer shall not make a
Qualified Matching Contribution on behalf of a Participant who is
not credited with:
a. / / more than 500 Hours of Service.
b. / / at least 1000 Hours of Service. If the Plan fails
to pass the participation or coverage tests required
under Code Sections 401(a)26 or 410(b) as a result of
this Hours of Service requirement, such requirement
shall be reduced to 501.
12.4 The level of contributions chosen by the Employer is subject to the
Code Section 401(m)(2) discrimination test and the Section 415
contribution limitations.
13. MATCHING CONTRIBUTIONS (May be subject to a Vesting Schedule under
Section 9)
13.1 / / The Employer will make Matching Contributions to the Plan on
behalf of Participants defined below who make Elective Deferrals,
irrespective of their employment status on the last day of the
Plan Year. The contribution shall be allocated to all
Participants who make Elective Deferrals, may be subject to a
vesting schedule and treated as a non-elective Employer
contribution for purposes of distributions. Matching
Contributions shall be made without regard to current or
accumulated profits.
13.2 / / Matching contributions will be:
a. / / Nonforfeitable when made.
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b. / / Subject to the vesting schedule applicable to Employer
contributions, other than Elective Deferrals, Qualified
Non-elective Contributions and Profit Sharing Contributions,
under the Plan.
c. / / The amount of such Matching Contributions made on
behalf of each Participant shall be:
c.1 / / _____ percent of the Elective Deferral made for
each Plan Year.
c.2 / / The Employer shall not match Elective Deferrals as
provided in a. above in excess of $_________ or in
excess of _____ percent of the Participant's
Compensation used for determining the amount of the
Participant's Salary Deferral as defined in Section 7
of this Adoption Agreement.
13.3 / / The Employer may make Matching Contributions from time to
time as it deems advisable, without regard to current or
accumulated profits. Such contribution shall be equal to a
specified percentage of the Participant's Elective Deferral,
provided that the Employer may establish a limit on the amount of
the Elective Deferral which shall be matched. Such limit shall
be specified either as a dollar amount or as a percentage of
Compensation used for determining the amount of the Participant's
Salary Deferral as defined in Section 7 of this Adoption
Agreement. This contribution shall be made on behalf of all
individuals who deferred during the Plan Year.
/ / Notwithstanding the above, the Employer shall not make a Matching
Contribution on behalf of a Participant who is not employed with
the Employer on the Anniversary Date, unless the Participant
terminated employment during the Plan Year by reason of death,
disability or retirement.
/ / Notwithstanding the above, the Employer shall not make a
Qualified Matching Contribution on behalf of a Participant who is
not credited with:
a. / / more than 500 Hours of Service.
b. / / at least 1000 Hours of Service. If the Plan fails to
pass the participation or coverage tests required under Code
Sections 401(a)26 or 410(b) as a result of this Hours of
Service requirement, such requirement shall be reduced to
501.
13.4 The level of contributions chosen by the Employer is subject to the
Code Section 401(m)(2) discrimination test and the Section 415
contribution limitations.
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14. SPECIAL DISTRIBUTIONS AND MISCELLANEOUS RULES
14.1 Elective Deferrals, Qualified Matching Contributions, Qualified
Non-elective Contributions and income allocable to such amounts shall
be distributable upon separation from service, death, or disability,
as defined in the underlying Plan document. Further, such amounts may
be distributable on any of the following events:
a. Termination of the Plan without the establishment of another
defined contribution plan.
b. As soon as would be administratively feasible after the
disposition by the Employer to an unrelated corporation of
substantially all of the assets (within the meaning of Code
Section 409(d)2)) used in a trade or business of the Employer, if
the Employer continues to maintain this Plan after such
disposition, but only with respect to Employees who continue
employment with the corporation which acquired such assets.
c. As soon as would be administratively feasible after the
disposition by the Employer to an unrelated entity of the
Employer's interest in a subsidiary (within the meaning of Code
Section 409(d)(3)) if the Employer continues to maintain this
Plan, but only with respect to Employees who continue employment
with such subsidiary.
14.2 HARDSHIP DISTRIBUTIONS:
/ / Upon application to, and approval by, the Administrator, a
special distribution may be made upon the hardship of the
Participant, to the extent provided for in Section 11.6(C) of the
Plan, and subject to applicable regulations prescribed by the
Secretary of the Treasury.
14.3 AGE 59 1/2:
/ / A Participant shall be permitted to withdraw all or a portion of
his vested account balance on or after the attainment of age
59 1/2.
14.4 PARTICIPANT LOANS:
/ / Participant loans shall be permitted in this Plan.
14.5 CALENDAR YEAR ELECTION:
Irrespective of any other language, clause or provision in the Plan
and Trust or Adoption Agreement, the Employer may elect to use the
calendar year ending with or within the determination year for the
look back year (as defined in Treasury Regulations under Section
414(q) of the Code) calculation for determining which Employees are
Highly Compensated Employees. The determination year shall be the
months (if any) in the current Plan Year which follow the end of the
calendar look-back year. If the Employer elects to make the calendar
year election with respect to any Plan, entity or arrangement, the
election must apply to all of the Plans, entities, and arrangements of
the Employer.
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/ / Employer elects to use the calendar year to determine whether an
Employee is Highly Compensated Employee in the look-back year.
14.6 VALUATION DATE for purposes of distributions, the Plan shall have the
following interim Valuation Dates:
a. / / Daily (each day of the Plan Year)
b. / / Quarterly (last day of each quarter of the Plan Year)
c. / / Other _______________________________________________
15. CLAIMS FOR EXCESS ELECTIVE DEFERRALS: Participants may notify the Plan of
and claim Excess Elective Deferrals for the preceding calendar year by
submitting their claims in writing to the Plan Administrator by March 1.
16. ACTUAL DEFERRAL AND CONTRIBUTION PERCENTAGES
16.1 Qualified Matching Contributions and Qualified Non-Elective
Contributions may be taken into account as Elective Deferrals for
purposes of calculating the Actual Deferral Percentages. In
determining Elective Deferrals for the purpose of the ADP test the
Employer shall include such Qualified Matching Contributions and such
Qualified Non-Elective Contributions under this Plan or any other Plan
of the Employer as necessary to meet the test and as provided for by
regulations under the Code.
16.2 The amount of such contributions taken into account as Elective
Deferrals for purposes of calculating the Actual Deferral Percentage,
subject to such other requirements as may be prescribed by the
Secretary of the Treasury, shall be those contributions as needed to
meet the test. Employer elections regarding Qualified Matching
Contributions are set forth in Section 12 above.
16.3 Qualified Matching Contributions and Qualified Non-Elective
Contributions may be taken into account as Contributions for purposes
of calculating the Actual Contribution Percentages. In determining
which contributions shall be counted for the purpose of the ACP test
the Employer shall include such Qualified Matching Contributions and
such Qualified Non-Elective Contributions under this Plan or any other
Plan of the Employer as necessary to meet the test and as provided for
by regulations under the Code.
16.4 The amount of such contributions taken into account as Contributions
for purposes of calculating the Actual Contribution Percentage,
subject to such other requirements as may be prescribed by the
Secretary of the Treasury, shall be those contributions as needed to
meet the test. Employer elections regarding vesting for Matching
Contributions are set forth in Section 13 above.
17. FORFEITURES: Forfeitures of Matching Contributions shall be: (Required if
the Employer elects to make Matching Contributions in this Adoption
Agreement)
Page 15
17.1 / / Applied in the current year of forfeiture to reduce employer
contributions.
17.2 / / Allocated in the current year of forfeiture, after all other
forfeitures under the plan, to each Participant's Matching
Contribution account in the ratio which each Participant's
Compensation for the Plan Year bears to the total Compensation of
all Participants for such Plan Year. Such forfeitures will not
be allocated to the account of any Highly Compensated Employee.
18. / / INDIVIDUAL INVESTMENT DIRECTION: If the Employer has elected
this Section, each Participant will have the right to direct the
investment of the amount allocated to his Plan account for each of the
contribution types which have also been checked below. Each
Participant will have the power to direct the investment with respect
to those contributions and the earning or losses thereon subject to
such rules as the Administrator and the Trustee may deem necessary.
Gains and losses of the funds so directed by the Participant shall
accrue solely to those funds. The Participant directing the
investment of amounts allocated to his account shall be solely
responsible for the investment results of such directions. This means
that the Participant shall be solely responsible for whatever gains
and/or losses are attributable to the amounts allocated to his account
for which he directs the investment. Contributions not checked below
will be held in a pooled trust and subject to the investment direction
and management of the Plan Administrator. If the Participant fails to
direct the investment of any contribution type checked below, the
failure will be deemed a direction by the Participant to invest said
funds in a money market, dollar-a-share fund or similar vehicle chosen
by the Plan for this purpose. Claims for excess Elective Deferrals
must be submitted by the date elected in Section 15 above.
18.1 / / Elective Deferrals
18.2 / / Qualified Non-elective Contributions
18.3 / / Matching Contributions
18.4 / / Qualified Matching Contributions.
18.5 / / Profit Sharing Contributions
19. LIMITATION YEAR shall mean each 12 consecutive month period ending on
______________________.
20. LIMITATION IN BENEFITS: If the Employer maintains or has ever maintained,
in addition to this Plan, one or more plans which are either qualified
defined benefit plans or qualified defined contribution plans other than
paired plan:
Plan #01 - Adoption Agreement 001
in which any Participant in this Plan is (or was) a participant or could
possibly become a participant, the Employer must complete this Section.
The Employer must also complete this Section if it maintains a welfare
benefit fund, as defined in Code Section 419(e), or
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an individual medical account, as defined in Code Section 415(l)(2) under
which amounts are treated as annual additions with respect to any
participant in this Plan. If the Participant is covered under another
qualified defined contribution plan maintained by the Employer, other than
a master or prototype plan:
20.1 / / The provisions of Section 5.5 (B) of the Plan will apply as
if the other plan were a master or prototype plan.
20.2 / / The total Annual Additions will be limited to the maximum
permissible amount and excess amounts will be reduced in a manner
that precludes Employer discretion, as follows:
20.3 / / If the Participant is or has ever been a Participant in a
defined benefit plan maintained by the Employer, the benefits
under the plans will be limited as follows (this method must
preclude Employer discretion):
21. MINIMUM CONTRIBUTION FOR TOP HEAVY PLAN: If the Employer maintains one or
more defined benefit plans in which a Participant participates in addition
to this Plan and does not maintain any other defined contribution plans in
which a Participant participates, the minimum benefit requirement
applicable to Top Heavy Plans shall be met under this Plan. If the minimum
benefit requirement is met under this Plan, the additional minimum benefit
shall not be provided.
22. YEAR OF SERVICE shall mean 1000 Hours of Service unless the Employer elects
otherwise below.
Hours of Service (less than 1000 Hours of Service).
23. PREDECESSOR EMPLOYER: Service with the following Predecessor Employer(s):
shall be counted for purposes of (place an "X" in the blank before the item
selected) eligibility, _____ Years of Service, and _____ vesting
(Covered Years of Service).
24. ADMINISTRATOR shall mean the Employer unless the Employer appoints an
individual or entity below. The Administrator shall have the sole and
ultimate authority to interpret the Plan terms and provisions.
25. OTHER BENEFITS:
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/ / Early Retirement Benefit (fully vested): Subject to the Joint and
Survivor Annuity requirements, any Participant may retire and receive
the entire amount in his Participant Account provided he has attained
age _____ and has at least _________ Covered Years of Service.
26. ACTUARIAL EQUIVALENT:
For purposes of establishing present value to compute the top heavy ratio,
benefit payments shall be discounted only for mortality and interest based
on the following:
26.1 / / Pre-Retirement Interest Rate _____%.
26.2 / / Post-Retirement Mortality Table: _________ with _____%
interest.
27. PARTICIPATING AFFILIATES: Each Affiliate (i.e., each member of a
controlled group of corporations, commonly controlled group of businesses,
or an affiliated service group within the meaning of Section 414 of the
Code) must adopt this Plan as a Participating Affiliate. [Attach
additional signature pages if there is more than one Participating
Affiliate.]
Participating Affiliate Name: ________________________________________
Employer Tax I.D.: ___________________________________________________
Taxable Year: ________________________________________________________
By: _______________________ Title: ___________________ Date: _____
28. ADMINISTRATOR: If the Employer has appointed an individual or an entity,
the following named individuals shall serve as Plan Administrator.
Signature by the Administrator (if other than the Employer) is in
acknowledgement of acceptance of appointment.
Administrator(s) Name(s) : Signature(s):
Optional Provision - To be elected if Plan Section 10.6 (E) is elected
< 29.> APPOINTMENT OF TRUSTEE OR CUSTODIAN (Select 29.1 or 29.2)
Incorporated businesses must name a Trustee. Unincorporated businesses
covering one or more Self Employed Individuals may appoint a Custodian or a
Trustee.
29.1 The following individual or entity shall be Trustee(s):
Name: ___________________________________________________________
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Address: ________________________________________________________
Phone Number: ___________________________________________________
Signature by the Trustee is in acknowledgment of acceptance of
appointment.
Signature: ______________________________________________________
29.2 The following individual or entity shall be Custodian(s).
Name: ___________________________________________________________
Address: ________________________________________________________
Phone Number: ___________________________________________________
Signature by the Custodian is in acknowledgment of acceptance of
appointment.
Signature: ______________________________________________________
Optional Provision - To be elected if Plan Section 10.6 (E) is not elected
< 29.> APPOINTMENT OF TRUSTEE: The following individual or entity shall be
Trustee(s):
Name: ________________________________________________________________
Address: _____________________________________________________________
Phone Number: ________________________________________________________
Signature by the Trustee is in acknowledgment of acceptance of appointment.
Signature: ___________________________________________________________
Optional Provision - To be elected if Plan Section 10.7 is elected.
30. INSURANCE TRUSTEE: Signature by the Trustee is in acknowledgement of
acceptance of appointment.
Insurance Trustee Name: ______________________________________________
Signature: ___________________________________________________________
30.< 31.> ADOPTION AGREEMENT USAGE:
This Adoption Agreement is only to be used with basic Defined Contribution
Plan document 03. The Adopting Employer may not rely on the opinion
letter issued by the National Office of the Internal Revenue Service as
evidence that this Plan is qualified under Section 401 of the Internal
Revenue Code. In order to obtain the reliance with respect to
qualification, application for a determination letter should be made to the
appropriate Key District Director of Internal Revenue.
Failure of the Employer to properly complete this Adoption Agreement may
result in the disqualification of this Plan.
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31.< 32.> SPONSORING ORGANIZATION - The Sponsoring organization or its
authorized representative identified below will inform the adopting
employer of any amendments made to the Plan or of the discontinuance
or abandonment of the Plan. The organization sponsoring this Plan is:
The authorized representative of the sponsoring organization is:
The Employer represents that the legal and tax aspects of this Plan and Trust
have been duly considered and passed upon by its attorney and/or tax advisor who
has determined that it is suitable and has been properly completed and adopted.
ADOPTION FOR THE EMPLOYER
By: ___________________________________________________ Date: ______________
Document #61726
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