Common use of 415 Safe-Harbor Compensation Clause in Contracts

415 Safe-Harbor Compensation. Compensation is defined as wages, salaries, and fees for professional services and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with the Employer maintaining the plan to the extent that the amounts are includible in gross income (including, but not limited to, commissions paid salesmen, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements or other expense allowances under a nonaccountable plan (as described in section 1.62-2(c) of the regulations)), and excluding the following: i) employer contributions to a plan of deferred compensation which are not included in the Employee's gross income for the taxable year in which contributed, or employer contributions under a simplified employee pension plan, or any distributions from a plan of deferred compensation; ii) amounts realized from the exercise of a non-qualified stock option, or when restricted stock (or property) held by an Employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture; iii) amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option; and iv) other amounts which received special tax benefits, or contributions made by the Employer (whether or not under a salary reduction agreement) towards the purchase of an annuity contract described in Code Section 403(b) (whether or not the contributions are actually excludible from the gross income of the Employee). For any Self-employed Individual, Compensation shall mean Earned Income. For purposes of applying the limitations of this section, Compensation for a Limitation Year is the Compensation actually paid or made available in gross income during such Limitation Year. For Limitation Years beginning after December 31, 1997, for purposes of applying the limitations of this section, Compensation paid or made available during such Limitation Year shall include any elective deferral (as defined in Code Section 402(g)(3)), and any amount which is contributed or deferred by the Employer at the election of the Employee and which is not includible in the gross income of the Employee by reason of Code Section 125, 132(f)(4), or 457. DEFINED BENEFIT PLAN FRACTION means a fraction, the numerator of which is the sum of the Member's Projected Annual Benefits under all the defined benefit plans (whether or not terminated) maintained by the Employer, and the denominator of which is the lesser of (i) 125 percent of the dollar limitation determined for the Limitation Year under Code Sections 415(b)(1)(A) and (d)or(ii) 140 percent of the Highest Average Compensation, including any adjustments under Code Section 415(b)(5). Notwithstanding the above, if the Member was a member as of the first day of the first Limitation Year beginning after December 31, 1986, in one or more defined benefit plans maintained by the Employer which were in existence on May 6, 1986, the denominator of this fraction will not be less than 125 percent of the sum of the annual benefits under such plans which the Member had accrued as of the close of the last Limitation Year beginning before January 1, 1987, disregarding any changes in the terms and conditions of the plan after May 5, 1986. The preceding sentence applies only if the defined benefit plans individually and in the aggregate satisfied the requirements of Code Section 415 for all Limitation Years beginning before January 1, 1987.

415 Safe-Harbor Compensation. Compensation is defined as means wages, salaries, and fees for professional services and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with the Employer maintaining the plan Plan to the extent that the amounts are includible in gross income (including, but not limited to, commissions paid salesmensalespersons, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements reimbursements, or other expense allowances under a nonaccountable plan (as described in section Regulation 1.62-2(c) of the regulations)), and excluding the following: i(1) employer Employer contributions to a plan of deferred compensation which are not included includible in the Employee's gross income for the taxable year in which contributed, or employer Employer contributions under a simplified employee pension planplan to the extent such contributions are excludable from the Employee's gross income, or any distributions from a plan of deferred compensation; ii(2) amounts Amounts realized from the exercise of a non-qualified nonqualified stock option, or when restricted stock (or property) held by an the Employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture; iii(3) amounts Amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option; and iv(4) other Other amounts which received receive special tax benefits, or contributions made by the Employer (whether or not under a salary reduction agreement) towards the purchase of an annuity contract described in Code Section 403(b) (whether or not the contributions are actually excludible excludable from the gross income of the Employee). For However, Compensation for any Self-employed Individual, Compensation Employed Individual shall mean be equal to Earned Income. For purposes of applying Compensation shall include only that Compensation which is actually paid to the limitations of Participant during the determination period. Except as otherwise provided in this sectionPlan, the determination period shall be the period elected by the Employer in the Adoption Agreement. If the Employer makes no election, the determination period shall be the Plan Year. Furthermore, unless otherwise elected in the Adoption Agreement, Compensation for a Limitation Year determination period shall only be recognized for an Employee's period of participation in the component of the Plan for which Compensation is being used. Notwithstanding the above, if elected in the Adoption Agreement, Compensation actually paid or shall include all of the following types of elective contributions and all of the following types of deferred compensation: (a) Elective contributions that are made available by the Employer on behalf of a Participant that are not includible in gross income during under Code Sections 125, 402(e)(3), 402(h)(1)(B) and 403(b); (b) Compensation deferred under an eligible deferred compensation plan within the meaning of Code Section 457(b); and (c) Employee contributions (under governmental plans) described in Code Section 414(h)(2) that are picked up by the employing unit and thus are treated as Employer contributions. Compensation in excess of $150,000 (or such Limitation Year. For Limitation Years beginning after December 31, 1997, other amount provided in the Code) shall be disregarded for all purposes other than for purposes of applying salary deferral elections. Such amount shall be adjusted by the limitations of this section, Compensation paid or made available during such Limitation Year shall include any elective deferral (as defined Commissioner for increases in the cost-of-living in accordance with Code Section 402(g)(3401(a)(17)(B)). The cost-of-living adjustment in effect for a calendar year applies to any determination period beginning in such calendar year. If a determination period consists of fewer than twelve (12) months, and any amount which is contributed or deferred the $150,000 annual Compensation limit will be multiplied by the Employer at the election of the Employee and which is not includible in the gross income of the Employee by reason of Code Section 125, 132(f)(4), or 457. DEFINED BENEFIT PLAN FRACTION means a fraction, the numerator of which is the sum number of months in the Member's Projected Annual Benefits under all the defined benefit plans (whether or not terminated) maintained by the Employerdetermination period, and the denominator of which is the lesser of twelve (i) 125 percent of the dollar limitation determined for the Limitation Year under Code Sections 415(b)(1)(A) and (d)or(ii) 140 percent of the Highest Average Compensation, including any adjustments under Code Section 415(b)(512). Notwithstanding the aboveforegoing, if except as otherwise elected in a non-standardized Adoption Agreement, the Member was a family member aggregation rules of Code Sections 401(a)(17) and 414(q)(6) as in effect prior to the enactment of the first day Small Business Job Protection Act of the first Limitation Year 1996 shall not apply to this Plan effective with respect to Plan Years beginning after December 31, 19861996. If, in one or more defined benefit plans maintained by the Adoption Agreement, the Employer which were elects to exclude a class of Employees from the Plan, then Compensation for any Employee who becomes eligible or ceases to be eligible to participate during a determination period shall only include Compensation while the Employee is an Eligible Employee. If, in existence on May 6, 1986connection with the adoption of any amendment, the denominator definition of this fraction will not be less than 125 percent Compensation has been modified, then, except as otherwise provided herein, for Plan Years prior to the Plan Year which includes the adoption date of such amendment, Compensation means compensation determined pursuant to the terms of the sum of the annual benefits under such plans which the Member had accrued as of the close of the last Limitation Year beginning before January 1, 1987, disregarding any changes Plan then in the terms and conditions of the plan after May 5, 1986. The preceding sentence applies only if the defined benefit plans individually and in the aggregate satisfied the requirements of Code Section 415 for all Limitation Years beginning before January 1, 1987effect.

415 Safe-Harbor Compensation. Compensation is defined as means wages, salaries, and fees for professional services and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with the Employer maintaining the plan Plan to the extent that the amounts are includible in gross income (including, but not limited to, commissions paid salesmensalespersons, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements reimbursements, or other expense allowances under a nonaccountable plan (as described in section Regulation 1.62-2(c) of the regulations))), and excluding the following: i(1) employer Employer contributions to a plan of deferred compensation which are not included includible in the Employee's gross income for the taxable year in which contributed, or employer Employer contributions under a simplified employee pension planplan to the extent such contributions are excludable from the Employee's gross income, or any distributions from a plan of deferred compensation; ii(2) amounts Amounts realized from the exercise of a non-qualified nonqualified stock option, or when restricted stock (or property) held by an the Employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture; iii(3) amounts Amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option; and iv(4) other Other amounts which received receive special tax benefits, or contributions made by the Employer (whether or not under a salary reduction agreement) towards the purchase of an annuity contract described in Code Section 403(b) (whether or not the contributions are actually excludible excludable from the gross income of the Employee). For However, Compensation for any Self-employed IndividualEmployed Individual shall be equal to Earned Income. Compensation shall include only that Compensation which is actually paid to the Participant during the determination period. Except as otherwise provided in this Plan, the determination period shall be the period elected by the Employer in the Adoption Agreement. If the Employer makes no election, the determination period shall be the Plan Year. Notwithstanding the above, if elected in the Adoption Agreement, Compensation shall mean Earned Income. For purposes include all of applying the limitations following types of this section, Compensation for elective contributions and all of the following types of deferred compensation: (a) Elective contributions that are made by the Employer on behalf of a Limitation Year is the Compensation actually paid or made available Participant that are not includible in gross income during such Limitation Yearunder Code Sections 125, 402(e)(3), 402(h)(1)(B), 403(b), and for Plan Years beginning on or after January 1, 2001 (or as of a date no earlier than January l, 1998, as specified in an addendum to the Adoption Agreement), 132(f)(4); (b) Compensation deferred under an eligible deferred compensation plan within the meaning of Code Section 457(b); and (c) Employee contributions (under governmental plans) described in Code Section 414(h)(2) that are picked up by the employing unit and thus are treated as Employer contributions. For Limitation Plan Years beginning on or after December 31January 1, 19971989, and before January 1, 1994, the annual Compensation of each Participant taken into account for determining all benefits provided under the Plan for any Plan Year shall not exceed $200,000. This limitation shall be adjusted by the Secretary at the same time and in the same manner as under Code Section 415(d), except that the dollar increase in effect on January 1 of any calendar year is effective for Plan Years beginning in such calendar year and the first adjustment to the $200,000 limitation is effective on January l, 1990. For Plan Years beginning on or after January 1, 1994, Compensation in excess of $150,000 (or such other amount provided in the Code) shall be disregarded for all purposes other than for purposes of applying salary deferral elections. Such amount shall be adjusted by the limitations of this section, Compensation paid or made available during such Limitation Year shall include any elective deferral (as defined Commissioner for increases in the cost-of-living in accordance with Code Section 402(g)(3401(a)(17)(B)). The cost-of-living adjustment in effect for a calendar year applies to any determination period beginning in such calendar year. If a determination period consists of fewer than twelve (I2) months, and any amount which is contributed or deferred the $150,000 annual Compensation limit will be multiplied by the Employer at the election of the Employee and which is not includible in the gross income of the Employee by reason of Code Section 125, 132(f)(4), or 457. DEFINED BENEFIT PLAN FRACTION means a fraction, the numerator of which is the sum number of months in the Member's Projected Annual Benefits under all the defined benefit plans (whether or not terminated) maintained by the Employerdetermination period, and the denominator of which is the lesser of twelve (i) 125 percent of the dollar limitation determined 12). If Compensation for any prior determination period is taken into account in determining a Participant's allocations for the Limitation Year under Code Sections 415(b)(1)(A) and (d)or(ii) 140 percent of current Plan Year, the Highest Average CompensationCompensation for such prior determination period is subject to the applicable annual Compensation limit in effect for that prior period. For this purpose, including any adjustments under Code Section 415(b)(5)in determining allocations in Plan Years beginning on or after January 1, 1989, the annual compensation limit in effect for determination periods beginning before that date is $200,000. In addition, in determining allocations in Plan Years beginning on or after January 1, 1994, the annual Compensation limit in effect for determination periods beginning before that date is $150,000. Notwithstanding the aboveforegoing, if except as otherwise elected in a non-standardized Adoption Agreement, the Member was a family member aggregation rules of Code Sections 401(a)(17) and 414(q)(6) as in effect prior to the enactment of the first day Small Business Job Protection Act of the first Limitation Year 1996 shall not apply to this Plan effective with respect to Plan Years beginning after December 31, 19861996. If, in one or more defined benefit plans maintained by the Adoption Agreement, the Employer which were elects to exclude a class of Employees from the Plan, then Compensation for any Employee who becomes eligible or ceases to be eligible to participate during a determination period shall only include Compensation while the Employee is an Eligible Employee. If, in existence on May 6, 1986connection with the adoption of any amendment, the denominator definition of this fraction will not be less than 125 percent Compensation has been modified, then, except as otherwise provided herein, for Plan Years prior to the Plan Year which includes the adoption date of such amendment, Compensation means compensation determined pursuant to the terms of the sum of the annual benefits under such plans which the Member had accrued as of the close of the last Limitation Year beginning before January 1, 1987, disregarding any changes Plan then in the terms and conditions of the plan after May 5, 1986. The preceding sentence applies only if the defined benefit plans individually and in the aggregate satisfied the requirements of Code Section 415 for all Limitation Years beginning before January 1, 1987effect.

415 Safe-Harbor Compensation. Compensation is defined as means wages, salaries, and fees for professional services and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with the Employer maintaining the plan Plan to the extent that the amounts are includible in gross income (including, but not limited to, commissions paid salesmensalespersons, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements reimbursements, or other expense allowances under a nonaccountable plan (as described in section Regulation 1.62-2(c) of the regulations))), and excluding the following: i(1) employer Employer contributions to a plan of deferred compensation which are not included includible in the Employee's gross income for the taxable year in which contributed, or employer Employer contributions under a simplified employee pension planplan to the extent such contributions are excludable from the Employee's gross income, or any distributions from a plan of deferred compensation; ii(2) amounts Amounts realized from the exercise of a non-qualified nonqualified stock option, or when restricted stock (or property) held by an the Employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture; iii(3) amounts Amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option; and iv(4) other Other amounts which received receive special tax benefits, or contributions made by the Employer (whether or not under a salary reduction agreement) towards the purchase of an annuity contract described in Code Section 403(b) (whether or not the contributions are actually excludible excludable from the gross income of the Employee). For However, Compensation for any Self-employed IndividualEmployed Individual shall be equal to Earned Income. Compensation shall include only that Compensation which is actually paid to the Participant during the determination period. Except as otherwise provided in this Plan, the determination period shall be the period elected by the Employer in the Adoption Agreement. If the Employer makes no election, the determination period shall be the Plan Year. Notwithstanding the above, if elected in the Adoption Agreement, Compensation shall mean Earned Income. For purposes include all of applying the limitations following types of this section, Compensation for elective contributions and all of the following types of deferred compensation: (a) Elective contributions that are made by the Employer on behalf of a Limitation Year is the Compensation actually paid or made available Participant that are not includible in gross income during such Limitation Yearunder Code Sections 125, 402(e)(3), 402(h)(1)(B), 403(b), and for Plan Years beginning on or after January 1, 2001 (or as of a date, no earlier than January 1, 1998, as specified in an addendum to the Adoption Agreement), 132(f)(4); (b) Compensation deferred under an eligible deferred compensation plan within the meaning of Code Section 457(b); and (c) Employee contributions (under governmental plans) described in Code Section 414(h)(2) that are picked up by the employing unit and thus are treated as Employer contributions. For Limitation Plan Years beginning on or after December 31January 1, 19971989, and before January 1, 1994, the annual Compensation of each Participant taken into account for determining all benefits provided under the Plan for any Plan Year shall not exceed $200,000. This limitation shall be adjusted by the Secretary at the same time and in the same manner as under Code Section 415(d), except that the dollar increase in effect on January 1 of any calendar year is effective for Plan Years beginning in such calendar year and the first adjustment to the $200,000 limitation is effective on January 1, 1990. For Plan Years beginning on or after January 1, 1994, Compensation in excess of $150,000 (or such other amount provided in the Code) shall be disregarded for all purposes other than for purposes of applying salary deferral elections. Such amount shall be adjusted by the limitations of this section, Compensation paid or made available during such Limitation Year shall include any elective deferral (as defined Commissioner for increases in the cost-of-living in accordance with Code Section 402(g)(3401(a)(17)(B)). The cost-of-living adjustment in effect for a calendar year applies to any determination period beginning in such calendar year. If a determination period consists of fewer than twelve (12) months, and any amount which is contributed or deferred the $150,000 annual Compensation limit will be multiplied by the Employer at the election of the Employee and which is not includible in the gross income of the Employee by reason of Code Section 125, 132(f)(4), or 457. DEFINED BENEFIT PLAN FRACTION means a fraction, the numerator of which is the sum number of months in the Member's Projected Annual Benefits under all the defined benefit plans (whether or not terminated) maintained by the Employerdetermination period, and the denominator of which is the lesser of twelve (i) 125 percent of the dollar limitation determined 12). If Compensation for any prior determination period is taken into account in determining a Participant's allocations for the Limitation Year under Code Sections 415(b)(1)(A) and (d)or(ii) 140 percent of current Plan Year, the Highest Average CompensationCompensation for such prior determination period is subject to the applicable annual Compensation limit in effect for that prior period. For this purpose, including any adjustments under Code Section 415(b)(5)in determining allocations in Plan Years beginning on or after January 1, 1989, the annual compensation limit in effect for determination periods beginning before that date is $200,000. In addition, in determining allocations in Plan Years beginning on or after January 1, 1994, the annual Compensation limit in effect for determination periods beginning before that date is $150,000. Notwithstanding the aboveforegoing, if except as otherwise elected in a non-standardized Adoption Agreement, the Member was a family member aggregation rules of Code Sections 401(a)(17) and 414(q)(6) as in effect prior to the enactment of the first day Small Business Job Protection Act of the first Limitation Year 1996 shall not apply to this Plan effective with respect to Plan Years beginning after December 31, 19861996. If, in one or more defined benefit plans maintained by the Adoption Agreement, the Employer which were elects to exclude a class of Employees from the Plan, then Compensation for any Employee who becomes eligible or ceases to be eligible to participate during a determination period shall only include Compensation while the Employee is an Eligible Employee. If, in existence on May 6, 1986connection with the adoption of any amendment, the denominator definition of this fraction will not be less than 125 percent Compensation has been modified, then, except as otherwise provided herein, for Plan Years prior to the Plan Year which includes the adoption date of such amendment, Compensation means compensation determined pursuant to the terms of the sum of the annual benefits under such plans which the Member had accrued as of the close of the last Limitation Year beginning before January 1, 1987, disregarding any changes Plan then in the terms and conditions of the plan after May 5, 1986. The preceding sentence applies only if the defined benefit plans individually and in the aggregate satisfied the requirements of Code Section 415 for all Limitation Years beginning before January 1, 1987effect.