Definition of Tax Limits


Tax Limits means both (i) the limit on compensation under Section 401(a)(17) of the Code (as adjusted from time to time under the terms of the Pension Plan), and (ii) the maximum benefit limit under Section 415(b)(1)(A) of the Code (as adjusted from time to time under the terms of the Pension Plan).

Examples of Tax Limits in a sentence

A Participant shall commence participation in the Plan on the later of the Effective Date or the first day of the Plan Year beginning after the Participants future retirement benefits under the Retirement Plan are limited by either or both of the Tax Limits.
An individual shall cease to be a Participant when the individuals future retirement benefits under the Retirement Plan are no longer limited by either of the Tax Limits or when the individual and his or her Beneficiary have received all benefits payable under the Plan.
Each participant in the Retirement Plan who is an employee of the Company or an Affiliated Company on or after the Effective Date, and whose retirement benefits under the Retirement Plan are limited by either or both of the Tax Limits, shall be a Participant.
In addition, there shall also be withheld from the Active Participants Compensation and credited to his Deferral Account an amount equal to any Before-Tax or After- Tax Contribution that was elected under the S-CAP, but cannot be credited to his S-CAP account without exceeding the Tax Limits.
An individual shall cease to be a Participant when the individual's future retirement benefits under the Pension Plan are no longer limited by either of the Tax Limits and when the individual and his or her Beneficiary have received all benefits payable under the Plan.