Maximum Permissible Amount definition
Maximum Permissible Amount. The lesser of (i) $30,000 (or, if greater, one-fourth of the defined benefit dollar limitation under Code Section 415(b)(1)(A)), or (ii) 25% of the Participant's Compensation for the Limitation Year. If there is a short Limitation Year because of a change in Limitation Year, the Advisory Committee will multiply the $30,000 (or adjusted) limitation by the following fraction: Number of months in the short Limitation Year --------------------------------------------- 12
Maximum Permissible Amount means, except to the extent permitted under this Plan and Code §414(v), the maximum "annual addition" that may be contributed or allocated to a Participant's Accounts under the Plan for any Limitation Year, which shall not exceed the lesser of:
Maximum Permissible Amount means the maximum Annual Addition that may be contributed or allocated to a Member's Account under the Plan for any Limitation Year. This amount shall not exceed the lesser of:
Examples of Maximum Permissible Amount in a sentence
The excess of the Participant's Annual Additions for the Limitation Year over the Maximum Permissible Amount.
As soon as is administratively feasible after the end of the Limitation Year, the Maximum Permissible Amount for the Limitation Year will be determined on the basis of the Participant's actual Compensation for the Limitation Year.
If the Employer contribution that would otherwise be contributed or allocated to the Participant’s account would cause the Annual Additions for the Limitation Year to exceed the Maximum Permissible Amount, the amount contributed or allocated will be reduced so that the Annual Additions for the Limitation Year will equal the Maximum Permissible Amount.
Prior to determining the Participant’s actual Compensation for the Limitation Year, the Employer may determine the Maximum Permissible Amount for a Participant on the basis of a reasonable estimate of the Participant’s Compensation for the Limitation Year, uniformly determined for all Participants similarly situated.
If a short Limitation Year is created because of an amendment changing the Limitation Year to a different twelve (12) consecutive month period, the Maximum Permissible Amount will not exceed the Defined Contribution Dollar Limitation multiplied by a fraction, the numerator of which is the number of months in the short Limitation Year and the denominator of which is twelve (12).
More Definitions of Maximum Permissible Amount
Maximum Permissible Amount means the lesser of:
Maximum Permissible Amount means for a Limitation Year with respect to any Participant the lesser of (A) $30,000 or, if greater, 25 percent of the dollar limitation set forth in Section 415(b)(1) of the Code, as in effect for the Limitation Year, or (B) 25 percent of the Participant's
Maximum Permissible Amount means, for Limitation Years that commence on or after January 1, 2002, the lesser of (1) $40,000.00 as adjusted by the Secretary of Treasury for increases in the cost of living or (2) 100 percent of the Participant's Annual Compensation for the Limitation Year. The Annual Compensation limitation referred to in clauses (2) of the immediately preceding sentences shall not apply to any contribution for medical benefits (within the meaning of section 401(h) or section 419A(f)(2) of the Code) that is otherwise treated as an Annual Addition under section 415(l)(1) or section 419A(d)(2) of the Code. If a short Limitation Year is created because of an amendment changing the Limitation Year to a different 12-consecutive month period, the Maximum Permissible Amount shall not exceed the dollar limitation in effect under section 415(c)(1)(A) of the Code multiplied by a fraction, the numerator of which is the number of months in the short Limitation Year, and the denominator of which is 12.
Maximum Permissible Amount means the lesser of:
(A) thirty-thousand dollars ($30,000) (or, if greater, one-fourth (1/4th) of the defined benefit dollar limitation set forth in section 415(b)(1) of the Code as in effect for the Limitation Year), or
(B) twenty-five percent (25%) of the Participant's Compensation for the Limitation Year. The compensation limitation referred to in paragraph (B) above shall not apply to any contribution for medical benefits (within the meaning of section 401(h) or section 419A(f)(2) of the Code) which is otherwise treated as an Annual Addition under section 415(l)(1) or 419A(d)(2) of the Code. If a short Limitation Year is created because of an amendment changing the Limitation Year to a different twelve (12) consecutive month period, the Maximum Permissible Amount will not exceed the defined contribution dollar limitation set forth in paragraph (A) above multiplied by the following fraction: Number of Months in the Short Limitation Year 12
Maximum Permissible Amount. (A) Effective as of the first day of the first Plan Year beginning on or after January 1, 1987, the lesser of the Defined Benefit Dollar limitation or one hundred percent (100%) of the Participant's Highest Average Compensation.
(B) If the Participant has less than ten (10) Years of Participation (as defined in Section 8.1(f)(13) of the Plan) with the Employer, the Defined Benefit Dollar Limitation is reduced by one-tenth (1/10th) for each Year of Participation (or part thereof) less then ten (10). If the Participant has less than ten (10) years of Service with the Employer, the Compensation limitation is reduced by one-tenth (1/10th) for each year of Service (or part thereof) less than ten (10). The adjustments of this paragraph (b) shall be applied in the denominator of the Defined Benefit Fraction based upon years of Service. Years of Service shall include future years occurring before the Participant's Normal Retirement Age. Such future years shall include the year which contains the date the Participant reaches Normal Retirement Age, only if it can be reasonably anticipated that the Participant will receive a year of Service for such year.
(C) If the annual benefit of the Participant commences before the Participant's Social Security Retirement Age, but on or after age sixty-two (62), the Defined Benefit Dollar Limitation as reduced above, if necessary, shall be determined as follows:
(i) If a Participant's Social Security Retirement Age is sixty-five (65), the dollar limitation for benefits commencing on or after age sixty-two (62) is determined by reducing the Defined Benefit Dollar Limitation by five-ninths of one percent (.556%) for each month by which benefits commence before the month in which the Participant attains age sixty-five (65).
(ii) If a Participant's Social Security Retirement Age is greater than sixty-five (65), the dollar limitation for benefits commencing on or after age sixty-two (62) is determined by reducing the defined benefit dollar limitation by five-ninths of one percent (.556%) for each of the first thirty-six (36) months and five-twelfths of one percent (.556%) for each of the additional months (up to twenty-four (24) months) by which benefits commence before the month of the Participant's Social Security Retirement Age.
(D) If the annual benefit of a Participant commences prior to age sixty-two (62), the Defined Benefit Dollar Limitation shall be the Actuarial Equivalent of an annual benefit beginning at age sixty-two (62...
Maximum Permissible Amount means the Defined Benefit Dollar Limitation adjusted where required and to the extent applicable pursuant to subsections (A) and (B) below.
Maximum Permissible Amount means the defined benefit dollar limitation as modified below.