Section 416 Account definition
Section 416 Account means the sum of:
Section 416 Account means the sum of the following:
Section 416 Account means—
(1) the amount credited as of a Determination Date to a Participant’s or Beneficiary’s (i) Account under the Plan and (ii) any other qualified defined contribution plan which is part of an Aggregation Group (including amounts to be credited as of a Determination Date but which have not yet been contributed);
(2) the present value of the accrued benefit credited as of a Determination Date to a Participant or Beneficiary under a qualified defined benefit plan which is part of an Aggregation Group; and
(3) the amount of distributions under the Plan and any plan aggregated with the Plan under section 416(g)(2) of the Code made during the one-year (1) period ending on the Determination Date to a Participant or Beneficiary, except for a distribution that is a tax-free rollover contribution (or similar transfer) that is not initiated by the Participant or that is contributed to a plan which is maintained by the Company or Affiliate. The preceding sentence shall also apply to distributions under a terminated plan which, had it not been terminated, would have been aggregated with the Plan under section 416(g)(2)(A)(i) of the Code. In the case of a distribution made for a reason other than separation from employment, death or disability, this provision shall be applied by substituting “five-year (5) period” for “one-year (1) period,” reduced by
(4) any Rollover Contribution (or similar transfer), initiated by the Participant, credited as of a Determination Date to a Participant’s Account under the Plan and any other qualified plan which is part of an Aggregation Group, derived from plans not maintained by the Company or Affiliate. The Account of a Participant who was a Key Employee and who subsequently meets none of the conditions of Section 21.2(c) for the Plan Year containing the Determination Date is not a Section 416 Account and shall be excluded from all computations under this Article 21. Furthermore, if a Participant has not performed any services for an Employer during the one-year (1) period ending on the Determination Date, then any Account of such Participant (and any accrued benefit for such Participant) shall not be taken into account in determining top-heaviness under this Article 21.
Examples of Section 416 Account in a sentence
Top-heaviness for the purpose of this Section 21.1(b) shall be determined with respect to the Aggregation Group in the same manner as described in Section 21.1(a) except that if the Aggregation Group includes a defined benefit plan, the Section 416 Account shall include the present value of the accrued benefit of a Participant or a Beneficiary under such plan.
More Definitions of Section 416 Account
Section 416 Account means the excess of (1) over (2) where--