Common use of Actual Contribution Percentage Test Clause in Contracts

Actual Contribution Percentage Test. The following will apply for Plan Years in which the Plan does not meet the requirements under Code Section 401(m)(11): (a) The Plan will satisfy the actual contribution percentage test set forth in Section 401(m)(2) of the Code and Treasury Regulation Section 1.401(m)-1(b), the provisions of which (and any subsequent Internal Revenue Service guidance issued thereunder) are incorporated herein by reference, each as modified by subsection (b), below. In accordance with Section 401(m)(2) of the Code and Treasury Regulation Section 1.401(m)-1(b), as modified by subsection (b), below, the actual contribution percentage for HCEs for any Plan Year will not exceed the greater of: (1) the actual contribution percentage for NHCEs for the current Plan Year multiplied by 1.25, or (2) the lesser of: (i) the actual contribution percentage for NHCEs for the current Plan Year multiplied by 2; and (ii) the actual contribution percentage for NHCEs for the current Plan Year plus 2%. (b) In performing the actual contribution percentage test described in subsection (a), above, the following special rules will apply: (1) the limit imposed by the actual contribution percentage test will apply only to HCEs and NHCEs who are not covered by an agreement that the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and an Employer; (2) Employees who have not become eligible to become Participants will be disregarded in applying this Section 13.03. (3) The Administrator may permissively aggregate the Plan with other plans to the extent permitted under Treasury Regulation Section 1.401(m)-1.

Actual Contribution Percentage Test. The following will apply for Plan Years in which the Plan does not meet the requirements under Code Section 401(m)(11): (a) The Plan will satisfy the actual contribution percentage test set forth in Section 401(m)(2) of the Code and Treasury Regulation Section 1.401(m)-1(b), the provisions of which (and any subsequent Internal Revenue Service guidance issued thereunder) are incorporated herein by reference, each as modified by subsection (b), below. In accordance with Section 401(m)(2) of the Code and Treasury Regulation Section 1.401(m)-1(b), as modified by subsection (b), below, the actual contribution percentage for HCEs for any Plan Year will not exceed the greater of: (1) the actual contribution percentage for NHCEs for the current Plan Year multiplied by 1.25, or (2) the lesser of: (i) the actual contribution percentage for NHCEs for the current Plan Year multiplied by 2; and (ii) the actual contribution percentage for NHCEs for the current Plan Year plus 2%. (b) In performing the actual contribution percentage test described in subsection (a), above, the following special rules will apply: (1) the limit imposed by the actual contribution percentage test will apply only to HCEs and NHCEs who are not covered by an agreement that the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and an Employer; (2) Employees who have not become eligible to become Participants will be disregarded in applying this Section 13.0313.3. (3) The Administrator may permissively aggregate the Plan with other plans to the extent permitted under Treasury Regulation Section 1.401(m)-1.

Actual Contribution Percentage Test. The following will apply for Plan Years in which the Plan does not meet the requirements under Code Section 401(m)(11): (a) The Plan will satisfy the actual contribution percentage test set forth in Section 401(m)(2) of the Code and Treasury Regulation Section 1.401(m)-1(b), the provisions of which (and any subsequent Internal Revenue Service guidance issued thereunder) are incorporated herein by reference, each as modified by subsection (b), below. In accordance with Section 401(m)(2) of the Code and Treasury Regulation Section 1.401(m)-1(b), as modified by subsection (b), below, the actual contribution percentage for HCEs for any Plan Year will not exceed the greater of: (1) the actual contribution percentage for NHCEs for the current Plan Year multiplied by 1.25, or (2) the lesser of: (i) the actual contribution percentage for NHCEs for the current Plan Year multiplied by 2; and (ii) the actual contribution percentage for NHCEs for the current Plan Year plus 2%. (b) In performing the actual contribution percentage test described in subsection (a), above, the following special rules will apply: (1) the limit imposed by the actual contribution percentage test will apply only to HCEs and NHCEs who are not covered by an agreement that the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and an Employer; (2) Employees who have not become eligible to become Participants will be disregarded in applying this Section 13.03. (3) The Administrator may permissively aggregate the Plan with other plans to the extent permitted under Treasury Regulation Section 1.401(m)-1.