Common use of Actual Contribution Percentage Test Clause in Contracts

Actual Contribution Percentage Test. (a) In general. For Plan Years beginning after December 31, 1986, Nondeductible Employee Contributions and Matching Contributions shall satisfy the tests defined in Code section 401(m), and sections 1.401(m)-1(b)(1) and 1.401(m)-2 of the Regulations, which are hereby incorporated by reference. For purposes of Sections 3.09 and 3.10 only, Matching Contribution means any Employer Contribution made to the Plan on account of a Salary Deferral Contribution made to the Plan, and any Forfeiture directly or indirectly allocated on the basis of Salary Deferral Contributions or Matching Contributions. The tests are as follows. (1) The Actual Contribution Percentage for the Highly Compensated Participant Group shall not exceed the greater of: (A) 125% of such percentage for the Nonhighly Compensated Participant Group for the preceding Plan Year, or (B) the lesser of 200% of such percentage for the Nonhighly Compensated Participant Group for the preceding Plan Year, or such percentage for the Nonhighly Compensated Group for the preceding Plan Year plus two (2) percentage points. The Employer may elect to use Current Year Testing rather than Prior Year Testing except that if the Current Year Testing election is made, it may not be changed unless the Employer satisfies the requirements for changing to Prior Year Testing as set forth in Internal Revenue Service Notice 98-1 (or its subsequent modification), or as provided by the Internal Revenue Service. In the case of a Plan's first Plan Year (other than a successor plan), the amount taken into account as the Actual Contribution Percentage of the Nonhighly Compensated Participant Group for the Prior Year Testing shall be 3%, unless the Employer elects to use Current Year Testing and, therefore, uses the Actual Contribution Percentage of the Nonhighly Compensated Participant Group during the first Plan Year.

Actual Contribution Percentage Test. (a) In general. For Plan Years beginning after December 31, 1986, Nondeductible Employee Contributions and Matching Contributions shall satisfy the tests defined in Code section 401(m), and sections 1.401(m)-1(b)(1) and 1.401(m)-2 of the Regulations, which are hereby incorporated by reference. For purposes of Sections 3.09 and 3.10 only, Matching Contribution means any Employer Contribution made to the Plan on account of a Salary Deferral Contribution made to the Plan, and any Forfeiture directly or indirectly allocated on the basis of Salary Deferral Contributions or Matching Contributions. The tests are as follows. (1) The Actual Contribution Percentage for the Highly Compensated Participant Group shall not exceed the greater of: (A) 125% of such percentage for the Nonhighly Compensated Participant Group for the preceding Plan Year, or (B) the lesser of 200% of such percentage for the Nonhighly Compensated Participant Group for the preceding Plan Year, or such percentage for the Nonhighly Compensated Group for the preceding Plan Year plus two (2) percentage points. The Employer may elect to use Current Year Testing rather than Prior Year Testing except that if the Current Year Testing election is made, it may not be changed unless the Employer satisfies the requirements for changing to Prior Year Testing as set forth in Internal Revenue Service Notice 98-1 (or its subsequent modification), or as provided by the Internal Revenue Service. In the case of a Plan's ’s first Plan Year (other than a successor plan), the amount taken into account as the Actual Contribution Percentage of the Nonhighly Compensated Participant Group for the Prior Year Testing shall be 3%, unless the Employer elects to use Current Year Testing and, therefore, uses the Actual Contribution Percentage of the Nonhighly Compensated Participant Group during the first Plan Year.

Actual Contribution Percentage Test. (a) In general. For Plan Years beginning after December 31, 1986, Nondeductible Employee Contributions and Matching Contributions shall satisfy the tests defined in Code section 401(m), and sections 1.401(m)-1(b)(1) and 1.401(m)-2 of the Regulations, which are hereby incorporated by reference. For purposes of Sections 3.09 and 3.10 only, Matching Contribution means any Employer Contribution made to the Plan on account of a Salary Deferral Contribution made to the Plan, and any Forfeiture directly or indirectly allocated on the basis of Salary Deferral Contributions or Matching Contributions. The tests are as follows. (1) The Actual Contribution Percentage for the Highly Compensated Participant Group shall not exceed the greater of: (A) 125% of such percentage for the Nonhighly Compensated Participant Group for the preceding Plan Year, or (B) the lesser of 200% of such percentage for the Nonhighly Compensated Participant Group for the preceding Plan Year, or such percentage for the Nonhighly Compensated Group for the preceding Plan Year plus two (2) percentage points. The Employer may elect to use Current Year Testing rather than Prior Year Testing except that if the Current Year Testing election is made, it may not be changed unless the Employer satisfies the requirements for changing to Prior Year Testing as set forth in Internal Revenue Service Notice 98-1 (or its subsequent modification), or as provided by the Internal Revenue Service. In the case of a Plan's first Plan Year (other than a successor plan), the amount taken into account as the Actual Contribution Percentage of the Nonhighly Compensated Participant Group for the Prior Year Testing shall be 3%, unless the Employer elects to use Current Year Testing and, therefore, uses the Actual Contribution Percentage of the Nonhighly Compensated Participant Group during the first Plan Year. (b) Nondiscrimination Safe Harbor. A Plan shall be treated as satisfying the Actual Contribution Percentage Test under Code section 401(m)(2) if: (1) The Employer satisfies the nondiscrimination safe harbor for the Actual Deferral Percentage Test in Section 3.05(d), and (A) The Matching Contributions made on behalf of any Participant are not made with respect to a Participant's Salary Deferrals in excess of 6% of the Participant's Compensation, and (B) The rate of a Participant's Matching Contribution does not increase as the rate of a Participant's Salary Deferrals increase, and (C) The Matching Contribution with respect to any Highly Compensated Employee at any rate of Salary Deferral Contributions is not greater than that with respect to a Nonhighly Compensated Participant; or (2) The Plan satisfies the contribution requirements of Code section 401(k)(11)(B) or 401(k)(12), the vesting requirements of Code section 401(k)(12)(E)(i), and the notice requirement of Code section 401(k)(12)(D).

Actual Contribution Percentage Test. The Matching Non-Elective Contributions made for a Plan Year are subject to the Actual Contribution Percentage (ACP) Test set forth in this Section. This test is satisfied if either the test in paragraph (a) In general. For or the test in paragraph (b) below is met for such Plan Years beginning after December 31, 1986, Nondeductible Employee Contributions and Matching Contributions shall satisfy the tests defined in Code section 401(m), and sections 1.401(m)-1(b)(1) and 1.401(m)-2 of the Regulations, which are hereby incorporated by reference. For purposes of Sections 3.09 and 3.10 only, Matching Contribution means any Employer Contribution made to the Plan on account of a Salary Deferral Contribution made to the Plan, and any Forfeiture directly or indirectly allocated on the basis of Salary Deferral Contributions or Matching Contributions. The tests are as follows.Year: (1a) The Actual Contribution Percentage for the Highly Compensated Participant Group shall Participants (HCP) is not exceed greater than 1.25 times the greater of:Actual Contribution Percentage of the Non-Highly Compensated Participants (NHCP). (Ab) 125% The excess of such percentage the Actual Contribution Percentage for the Nonhighly Compensated Participant Group HCP minus the Actual Contribution Percentage for the preceding Plan Year, or (B) the lesser of 200% of such percentage for the Nonhighly Compensated Participant Group for the preceding Plan Year, or such percentage for the Nonhighly Compensated Group for the preceding Plan Year plus NHCP is not greater than two (2) percentage points. The Employer may elect to use Current Year Testing rather ; and the Actual Contribution Percentage for the HCP is not greater than Prior Year Testing except that if the Current Year Testing election is made, it may not be changed unless the Employer satisfies the requirements for changing to Prior Year Testing as set forth in Internal Revenue Service Notice 98-1 two (or its subsequent modification), or as provided by the Internal Revenue Service. In the case of a Plan's first Plan Year (other than a successor plan), the amount taken into account as 2) times the Actual Contribution Percentage of the Nonhighly NHCP. For purposes of this Section, Actual Contribution Percentage means, with respect to the Highly Compensated Participants and Non-Highly Compensated Participants for a Plan Year, the average of the ratios, calculated separately for each Participant Group in such group, of the amount of the Participant’s Matching Non-Elective Contributions (to the extent not taken into account for purposes of the Actual Deferral Percentage Test of Section 5.03) to the Participant’s 414(s) Compensation for the Prior Year Testing shall Plan Year. All or a portion of the Qualified Non-Elective Contributions not utilized to meet the Actual Deferral Percentage Test of Section 5.03 may be 3%included in computing the Actual Contribution Percentages for all Participants. For Plan Years in which the current year Actual Contribution Percentages for the Non-Highly Compensated Participants are used (see below), unless Qualified Non-Elective Contributions may be included in computing the Employer elects Actual Contribution Percentages to use Current Year Testing and, therefore, uses the extent needed to meet the Actual Contribution Percentage test. Matching Non-Elective Contributions and Qualified Non-Elective Contributions will be considered made for a Plan Year if made no later than the end of the Nonhighly Compensated Participant Group during twelve (12) month period beginning on the first day after the close of the Plan Year. Elective Contributions may be used in the Actual Contribution Percentage Test if the Actual Deferral Percentage Test of Section 5.03 is met using all the Elective Contributions and continues to be met following the exclusion of Elective Contributions used in the Actual Contribution Percentage Test. Amounts forfeited to correct Excess Aggregate Contributions or because the contributions to which they relate are either Excess Deferred Income, Excess Contributions or Excess Aggregate Contributions shall not be included in this test. A Matching Non-Elective Contribution with respect to an Elective Contribution for a year is not taken into account in determining the Actual Contribution Percentage for Non-Highly Compensated Employees to the extent it exceeds the greatest of: (a) five percent (5%) of such Non-Highly Compensated Employee's 414(s) Compensation for the year; (b) the Non-Highly Compensated Employee’s Deferred Income for the year; or (c) the product of two (2) times the Plan’s “representative matching rate” and the Non-Highly Compensated Elective Contribution for the year.

Actual Contribution Percentage Test. (a) In general. For Plan Years beginning after December 31, 1986, Nondeductible Employee Contributions and Matching Contributions shall satisfy the tests defined in Code section 401(m), and sections 1.401(m)-1(b)(1) and 1.401(m)-2 of the Regulations, which are hereby incorporated by reference. For purposes of Sections 3.09 and 3.10 this Section only, Matching Contribution means any Employer Contribution made to the Plan on account of a Salary an Elective Deferral Contribution made to the Plan, and any Forfeiture directly or indirectly allocated on the basis of Salary Deferral Contributions Elective Deferrals or Matching Contributions. The Actual Contribution Percentage shall not include Catch-Up Contributions and contributions made with respect to Qualified Military Service as described in Section 3.14, along with applicable Matching Contributions made on those amounts. The tests are as follows. (1) The Actual Contribution Percentage for the Highly Compensated Participant Group shall not exceed the greater of: (A) 125% of such percentage for the Nonhighly Compensated Participant Group for the preceding Plan Year, or (B) the lesser of 200% of such percentage for the Nonhighly Compensated Participant Group for the preceding Plan Year, or such percentage for the Nonhighly Compensated Group for the preceding Plan Year plus two (2) percentage points. . (2) The Employer may elect to use Current Year Testing rather than Prior Year Testing except that if the Current Year Testing election is made, it may not be changed unless the Employer satisfies the requirements for changing to Prior Year Testing as set forth in Internal Revenue Service Notice 98-1 (or its subsequent modification), or as provided by the Internal Revenue Service. Service and, for Plan Years beginning on or after January 1, 2006, if the Current Year Testing election is made, it may change to Prior Year Testing only in situations described in Regulation section 1.401(k)-2(c)(1)(ii). (3) In the case of a Plan's ’s first Plan Year (other than a successor plan), the amount taken into account as the Actual Contribution Percentage of the Nonhighly Compensated Participant Group for the Prior Year Testing shall be 3%, unless the Employer elects to use Current Year Testing and, therefore, uses the Actual Contribution Percentage of the Nonhighly Compensated Participant Group during the first Plan Year.