Examples of Discretionary Contribution in a sentence
Discretionary Contribution Grants are available when an applicant has a contribution to make towards a mandatory DFG based on a financial means test.
If the Employer/Sponsoring Entity has elected Discretionary Contributions or Accrued Leave Contributions in the Plan Specifications, the Administrator shall keep an account known as the “Employer/Sponsoring Entity Contribution Account,” for each Participant for whom the Employer/Sponsoring Entity makes a Discretionary Contribution and a second account known as the “Accrued Leave Contribution Account,” for each Participant for whom the Employer/Sponsoring Entity makes an Accrued Leave Contribution.
Discretionary Contributions are credited at the sole discretion of the Participating Employer, and the fact that a Discretionary Contribution is credited in one year shall not obligate the Participating Employer to continue to make such Discretionary Contributions in subsequent years.
If a contribution is made, you may receive an allocation if:− you are employed on the last day of the Plan Year; and− you completed 1,000 Hours of Service with the Employer during the Plan Year (special rules for counting 1,000 hours apply if you are transferred to a Related Employer during the Plan Year).The Employer Discretionary Contribution, if any, will be made to your Employer Discretionary Contributions Account in the calendar year following the end of the applicable Plan Year.
Generally the amount deferred will be taxable when paid, unless it can be shown that there is no longer a substantial risk of forfeiture (i.e., the employer has set the deferred amount aside in a separate account or fund established in the worker’s name).Not Taxable: Discretionary Contribution.