Designated Xxxx Contributions. Comments are also specifically requested on special issues relating to designated Xxxx contributions. For example, comments are requested on whether, if a plan failed to implement a participant’s election to have a designated Xxxx contribution made on his or her behalf, but instead a pre-tax elective deferral was made for the participant with the participant’s compensation reduced accordingly, would it be an appropriate correction for the failure for the employer to ask the participant whether correction should be made by a transfer of the contribution (with earnings) to a Xxxx account and inclusion of the amount so transferred in the participant’s compensation in the year of the transfer (instead of either (i) a similar transfer with a corrected W-2 for the year of the failure and the participant having to complete an amended return for the year of the failure or (ii) a similar transfer and inclusion of the amount so transferred in the participant’s compensation in the year of the transfer, but with the employer to make a grossup payment to the participant to make the participant whole for the resulting income tax). Comments are also requested regarding cases in which a plan fails to notify an employee of his or her right to elect designated Xxxx contributions, such as whether the correction for the failure described in the preceding sentence should also be applied in this case or whether some additional corrective contribution should be required to reflect the possibility that a participant’s decision to make an elective deferral might be affected by the availability of designated Xxxx contributions. See also section .05(3) of Appendix A and Example 3 of Appendix B, section 2.02(1)(b), for an illustration of correction for exclusion of otherwise eligible employees from being able to make elective deferrals, which applies without regard to whether the plan only permits pre-tax elective deferrals or whether the plan also permits designated Xxxx elective deferrals.
Designated Xxxx Contributions. The examples in this Appendix B generally do not identify whether the plan offers designated Xxxx contributions. The results in the examples, including corrective contributions, would be the same whether or not the plan offered designated Xxxx contributions.
Designated Xxxx Contributions. Eligible rollover distributions of designated Xxxx assets from a deceased participant’s Xxxx 401(k) plan(s) or Xxxx 403(b) arrangement(s) may be rolled over by a nonspouse beneficiary to an Inherited Xxxx XXX. Rollovers to an Inherited Xxxx XXX must be sent directly from the plan administrator to the Inherited Xxxx XXX. The nonspouse beneficiary may not have constructive receipt of the assets. The nonspouse beneficiary is solely responsible for tracking the taxable and nontaxable amounts of the assets rolled over. If a nonqualified distribution is rolled over from Xxxx 401(k) or Xxxx 403(b) to a Xxxx XXX, the nontaxable and taxable rollover amounts must still be tracked. If a qualified distribution from a Xxxx 401(k) or Xxxx 403(b) is rolled over, the entire amount of the rollover contribution is considered basis in the Xxxx XXX. Qualified Rollover Contributions. If current eligibility requirements as defined by the Code and Regulations are met, a nonspouse beneficiary may make a qualified rollover contribution to a Xxxx XXX from an eligible retirement plan other than a Xxxx XXX. A qualified rollover contribution must be sent in a direct trustee-to- trustee transaction from the distributing plan to the Inherited Xxxx XXX. The nonspouse beneficiary may not have constructive receipt of the assets. For assistance in determining qualified rollover contribution eligibility and the tax consequences of such a transaction, consult a tax advisor. A nonspouse beneficiary ineligible to make a qualified rollover contribution to a Xxxx XXX may be eligible to recharacterize such contribution pursuant to the Code and Regulations.
Designated Xxxx Contributions. Eligible rollover distributions of designated Xxxx contributions (and earnings thereon) from a 401(k), 403(b), or 457(b) plan may be directly rolled over by a spouse, nonspouse, or qualified trust beneficiary to an Inherited Xxxx XXX. Rollovers to an Inherited Xxxx XXX must be sent directly from the plan administrator to the Inherited Xxxx XXX Custodian. The beneficiary may not have constructive receipt of the assets. The beneficiary is solely responsible for tracking the taxable and nontaxable amounts of the assets rolled over. If a nonqualified distribution is rolled over from a designated Xxxx account in a 401(k), 403(b) or 457(b) plan to a Xxxx XXX, the portion of the distribution that constitutes the contribution basis is treated as basis in the Xxxx XXX. If a qualified distribution is rolled over from a designated Xxxx account in a 401(k), 403(b) or 457(b) plan to a Xxxx XXX, the entire amount of the rollover contribution is considered basis in the Xxxx XXX. In the cases of an overpayment that has been directly rolled over to an Inherited Xxxx XXX, the Inherited Xxxx XXX owner is typically eligible to contest the plan sponsor’s recoupment effort of such overpayment. While the Inherited Xxxx XXX owner contests the efforts to recoup, the Custodian will retain the contested assets pending the outcome of the procedures and, in the event the payment is found to be an overpayment, return such overpayment to the distributing plan. Qualified Rollover Contributions. If current eligibility requirements as defined by the Code and Regulations are met, spouse, nonspouse, or qualified trust beneficiary may make a qualified rollover contribution to a Xxxx XXX from an eligible retirement plan other than a Xxxx XXX. A qualified rollover contribution must be sent in a direct rollover from the distributing plan to the Inherited Xxxx XXX. The beneficiary may not have constructive receipt of the assets. For assistance in determining qualified rollover contribution eligibility and the tax consequences of such a transaction, consult a tax advisor. Distributions to Inherited Xxxx XXX Owners. Beneficiary payouts from Inherited Xxxx IRAs must continue as required by the Code and Regulations. See, “BENEFICIARY DISTRIBUTIONS – DEATH OF IRA OWNER BEFORE JANUARY 1, 2020” and “BENEFICIARY DISTRIBUTIONS – DEATH OF IRA OWNER ON OR AFTER JANUARY 1, 2020” in this document for more information. MISCELLANEOUS
Designated Xxxx Contributions. “Designated Xxxx Contributions” means a Participant’s Elective Contributions that are includible in the Participant’s gross income at the time deferred and have been irrevocably designated as Designated Xxxx Contributions by the Participant in his or her contribution election.
Designated Xxxx Contributions. (a) Each Participant may make Designated Xxxx Contributions; provided, however, that a Participant shall not make a Designated Xxxx Contribution to the Plan for any Plan Year to the extent such Designated Xxxx Contributions combined with any pre-tax deferrals to the Plan would exceed the limitations of Article IV.
Designated Xxxx Contributions. The Employer may make Code section 403(b) elective deferral contributions that (1) satisfy §1.403(b)-3(c), (2) the Participant irrevocably designates at the time of the salary deferral election as a designated Xxxx contribution that is being made in lieu of all or a portion of the Code section 403(b) elective deferral contributions that the Participant is otherwise eligible to make under the Plan, (3) are treated by the Employer as includible in the Participant’s gross income at the time the Participant would have received the amount in cash if the Participant had not entered into the Salary Reduction Agreement and (4) shall be recordkept in a separate source.
Designated Xxxx Contributions. If elected by the Employer in the Adoption Agreement, the Participant may designate that all or a portion of his/her elective contributions to the Plan be treated as after-tax Xxxx contributions (referred to herein as “Designated Xxxx Contributions”). Such designation must be made before the date upon which the amounts designated would otherwise have been payable to the Participant (but for the election to defer), and such designation must be irrevocable on and after that date. Designated Xxxx Contributions (and the earning thereon) shall be accounted for separately from all other contributions to the Plan (including rollovers of Xxxx contributions from other plans and in-plan Xxxx conversions) and the earnings on those contributions. If a Participant takes a distribution of less Than 100% of his Account (including an In- Service Distribution or an Unforeseeable Emergency Withdrawal), the Participant may designate whether such distribution shall be made from the Participant’s pre-tax Elective Deferral Contributions or after-tax Designated Xxxx Contributions.
Designated Xxxx Contributions. A Participant may make Designated Xxxx Contributions to the Custodial Account if the Employer’s Plan provides for Designated Xxxx Contributions.
Designated Xxxx Contributions. Subject to the terms of the Employer Plan or as permitted under the Recordkeeping Agreement, the Employer may make Designated Xxxx Contributions (as defined below), in cash, to the Participant’s Custodial Account. “Designated Xxxx Contributions” shall mean Salary Reduction Contributions that the Participant irrevocably designates as designated Xxxx contributions that are being made in lieu of all or a portion of the pretax Salary Reduction Contributions; that are treated by the Employer as includible in the Participant’s income at the time that the Participant would have received the amount in cash if the Participant had not made the Salary Reduction Contribution and that are maintained in a separate subaccount in the Participant’s Custodial Account. Designated Xxxx Contributions shall satisfy the requirements of Treasury Regulation section 1.403(b)-3(c)(2) and amounts in the separate subaccount for Designated Xxxx Contributions shall be treated as a separate contract for purposes of Code section 72.
