Correction of Excess Aggregate Contributions Sample Clauses

Correction of Excess Aggregate Contributions. If the Plan fails the ACP Test for a Plan Year, the Plan Administrator may use any combination of the correction methods under this Section to correct the Excess Aggregate Contributions under the Plan. (See Section 17.7(c) for the definition of Excess Aggregate Contributions.)
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Correction of Excess Aggregate Contributions. The amount of Excess Aggregate Contributions for a Highly Compensated Participant for a Plan Year is to be determined by the following leveling method, under which the Actual Contribution Percentage of the Highly Compensated Participant with the highest Nondeductible Employee and Matching Contributions is reduced to the extent required to enable the Plan to satisfy the Actual Contribution Percentage Test. For each Highly Compensated Participant, the amount of Excess Aggregate Contributions is the excess of the aggregate amount of the Nondeductible Employee Contributions and Matching Contributions and contributions treated as Matching Contributions (determined prior to the application of this paragraph) actually made on behalf of Highly Compensated Employees for the Plan Year, over the maximum amount of such contributions permitted under the Actual Contribution Percentage Test (determined by reducing the contributions made on behalf of Highly Compensated Employees in order of their Actual Contribution Percentage amounts beginning with the Highly Compensated Employee with the largest amount and continuing in descending order until all the Excess Aggregate Contributions have been allocated.) For purposes of subsections (a) and (c) of this Section 3.09, Matching Contributions forfeited as a result of a correction or return of Excess Deferrals (determined pursuant to Section 3.06) or Excess Contributions (determined pursuant to the test described in Section 3.05) shall be credited for purposes of reducing any Excess Aggregate Contributions.
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Correction of Excess Aggregate Contributions. (1) If the limitation under Paragraph (d) is exceeded, an Employer may, in the discretion of the Committee, make additional contributions to the accounts of eligible Employees who are not Highly Compensated Employees up to an amount necessary to assure that the limitation under Paragraph (d) is satisfied, which additional contributions shall either be Qualified Nonelective Contributions. The Employer shall maintain such records as necessary to demonstrate compliance with the limitations of Paragraph (d), including records showing the extent to which Qualified Nonelective Contributions are taken into account in applying such limitations.
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Correction of Excess Aggregate Contributions. Corrections of Excess Aggregate Contributions will be made by (i) determining the amount of the total Excess Aggregate Contributions that must be forfeited or distributed in order to meet the Actual Contribution Percentage test, and then (ii) reducing the dollar amount of contributions taken into account in determining the Actual Contribution Percentage of the Highly Compensated Employee(s) who has (have) the highest dollar amount of Excess Aggregate Contributions to the level of the Highly Compensated Employee(s) with the next highest dollar amount of Excess Aggregate Contributions. The resulting reduction in such contributions will be forfeited or returned to the affected Highly Compensated Employee(s). However, if a lesser reduction, when added to the total amount distributed under step (ii) would equal the total Excess Aggregate Contributions, then the lesser amount will be forfeited or distributed. If the total amount forfeited or distributed is less than the total Excess Aggregate Contributions, then step (ii) will be repeated as many times as necessary. Excess Aggregate Contributions, plus or minus any allocable income or loss, will be paid to the Participants to whose Accounts they were allocated, no later than the last day of the Plan Year following the Plan Year for which they were allocated. If such payments are insufficient to effect the necessary correction, Excess Aggregate Contributions, plus or minus any allocable income or loss, will be forfeited, if otherwise forfeitable under the terms of the Plan. If the payments (or forfeitures) are made more than 2 1/2 months after the last day of the Plan Year for which the Excess Aggregate Contributions were allocated, the Employer will be subject to a 10% excise tax. Excess Aggregate Contributions will be adjusted for income or loss allocable to them for the Plan Year in which they were allocated, using a method used for allocating income and loss to Participants' Accounts, applied consistently for all Participants and for all corrective distributions under the Plan for the Plan Year. Income or loss allocable to the period between the end of the Plan Year for which the Excess Aggregate Contributions were allocated and the date they are distributed will be disregarded. If the rate of Matching Contribution to a Highly Compensated Employee (determined as a percentage of Compensation, after all corrective measures have been taken under the other provisions of this Article) violates the discrimination r...
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Correction of Excess Aggregate Contributions. If the Employee or Matching Contributions made on behalf of Participants would cause the Plan to exceed the limits under section 401(m)(2) of the Code, the Administrator may limit the amount of such Contributions to be made with respect to any Highly Compensated Employee. If such limits have not been met for a Plan Year after all contributions for the Plan Year have been made, then any excess aggregate contributions and any allocable income, gain or loss shall be returned to the affected Participants no later than 12 months after the close of the Plan Year in which the excess aggregate contribution was made. If a distribution becomes necessary, it will be first applied to the Participant who is the Highly Compensated Employee with the highest actual contribution ratio, until the limits of Code section 401(m)(2) are met or until such Participant's actual contribution ratio is reduced to the same percentage level as that of the Participant who is the Highly Compensated Employee having the next highest actual contribution ratio. If further limitations are required, this process shall be repeated until the tests of section 401(m)(2) are met. The amount of excess aggregate contributions for any Highly Compensated Employee shall be determined as the amount of Employee and Matching Contributions made with respect to the Employee, less the product of (i) his or her reduced actual contribution ratio and (ii) his or her Compensation. Distributions of excess aggregate contributions shall be made first from unmatched Employee Contributions and only then from matched Employee Contributions and Matching Contributions. A Participant's excess aggregate contributions will be designated by the Administrator as a distribution of excess aggregate contributions. Excess aggregate contributions shall be allocated to Participants who are subject to the family aggregation rules of section 414(q)(6) of the Code in the manner prescribed by applicable Treasury Regulations. The Administrator shall maintain such records as are necessary to demonstrate compliance with the tests of section 401(m)(2) of the Code.
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Correction of Excess Aggregate Contributions 
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Related to Correction of Excess Aggregate Contributions

  • DISTRIBUTION OF EXCESS AGGREGATE CONTRIBUTIONS The Advisory Committee will determine excess aggregate contributions after determining excess deferrals under Section 14.07 and excess contributions under Section 14.08. If the Advisory Committee determines the Plan fails to satisfy the ACP test for a Plan Year, it must distribute the excess aggregate contributions, as adjusted for allocable income, during the next Plan Year. However, the Employer will incur an excise tax equal to 10% of the amount of excess aggregate contributions for a Plan Year not distributed to the appropriate Highly Compensated Employees during the first 2 1/2 months of that next Plan Year. The excess aggregate contributions are the amount of aggregate contributions allocated on behalf of the Highly Compensated Employees which causes the Plan to fail to satisfy the ACP test. The Advisory Committee will distribute to each Highly Compensated Employee his respective share of the excess aggregate contributions. The Advisory Committee will determine the respective shares of excess aggregate contributions by starting with the Highly Compensated Employee(s) who has the greatest contribution percentage, reducing his contribution percentage (but not below the next highest contribution percentage), then, if necessary, reducing the contribution percentage of the Highly Compensated Employee(s) at the next highest contribution percentage level (including the contribution percentage of the Highly Compensated Employee(s) whose contribution percentage the Advisory Committee already has reduced), and continuing in this manner until the ACP for the Highly Compensated Group satisfies the ACP test. If the Highly Compensated Employee is part of an aggregated family group, the Advisory Committee, in accordance with the applicable Treasury regulations, will determine each aggregated family member's allocable share of the excess aggregate contributions assigned to the family unit.

  • Distribution of Excess Contributions If the Advisory Committee determines the Plan fails to satisfy the ADP test for a Plan Year, it must distribute the excess contributions, as adjusted for allocable income, during the next Plan Year. However, the Employer will incur an excise tax equal to 10% of the amount of excess contributions for a Plan Year not distributed to the appropriate Highly Compensated Employees during the first 2 1/2 months of that next Plan Year. The excess contributions are the amount of deferral contributions made by the Highly Compensated Employees which causes the Plan to fail to satisfy the ADP test. The Advisory Committee will distribute to each Highly Compensated Employee his respective share of the excess contributions. The Advisory Committee will determine the respective shares of excess contributions by starting with the Highly Compensated Employee(s) who has the greatest ADP, reducing his ADP (but not below the next highest ADP), then, if necessary, reducing the ADP of the Highly Compensated Employee(s) at the next highest ADP level (including the ADP of the Highly Compensated Employee(s) whose ADP the Advisory Committee already has reduced), and continuing in this manner until the average ADP for the Highly Compensated Group satisfies the ADP test. If the Highly Compensated Employee is part of an aggregated family group, the Advisory Committee, in accordance with the applicable Treasury regulations, will determine each aggregated family member's allocable share of the excess contributions assigned to the family unit.

  • Employer Contributions 8.1 Rates at which the Employer shall contribute for each hour of work performed on behalf of each employee employed under the terms of this Agreement are contained in the Appendices attached to and forming part of this Agreement.

  • Catch-Up Contributions In the case of a Traditional IRA Owner who is age 50 or older by the close of the taxable year, the annual cash contribution limit is increased by $1,000 for any taxable year beginning in 2006 and years thereafter.

  • Qualified Nonelective Contributions If the Employer, at the time of contribution, designates a contribution to be a qualified nonelective contribution for the Plan Year, the Advisory Committee will allocate that qualified nonelective contribution to the Qualified Nonelective Contributions Account of each Participant eligible for an allocation of that designated contribution, as specified in Section 3.04 of the Employer's Adoption Agreement. The Advisory Committee will make the allocation to each eligible Participant's Account in the same ratio that the Participant's Compensation for the Plan Year bears to the total Compensation of all eligible Participants for the Plan Year. The Advisory Committee will determine a Participant's Compensation in accordance with the general definition of Compensation under Section 1.12 of the Plan, as modified by the Employer in Sections 1.12 and 3.06 of its Adoption Agreement.

  • Employer Profit Sharing Contributions An Employee will be eligible to become a Participant in the Plan for purposes of receiving an allocation of any Employer Profit Sharing Contribution made pursuant to Section 11 of the Adoption Agreement after completing 1 (enter 0, 1, 2 or any fraction less than 2)

  • Payments from Available Funds Only All payments to be made by the Borrower under this Agreement shall be made only from the amounts that constitute Scheduled Payments, Special Payments and other payments under the Operative Agreements, including payment under Section 4.02 of the Participation Agreements and payments under Section 2.14 of the Indentures, and only to the extent that the Borrower shall have sufficient income or proceeds therefrom to enable the Borrower to make payments in accordance with the terms hereof after giving effect to the priority of payments provisions set forth in the Intercreditor Agreement. The Liquidity Provider agrees that it will look solely to such amounts to the extent available for distribution to it as provided in the Intercreditor Agreement and this Agreement and that the Borrower, in its individual capacity, is not personally liable to it for any amounts payable or liability under this Agreement except as expressly provided in this Agreement, the Intercreditor Agreement or any Participation Agreement. Amounts on deposit in the Class A Cash Collateral Account shall be available to the Borrower to make payments under this Agreement only to the extent and for the purposes expressly contemplated in Section 3.05(f) of the Intercreditor Agreement.

  • Qualified Matching Contributions If selected below, the Employer may make Qualified Matching Contributions for each Plan Year (select all those applicable):

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