Application to excess benefit plans Sample Clauses

Application to excess benefit plans. For purposes of this paragraph (a)(7), a service provider is treated as initially eligible to participate in an excess ben- efit plan as of the first day of the serv- ice provider’s taxable year imme- diately following the first year the service provider accrues a benefit under the excess benefit plan; and any election made within 30 days following such date is treated as applying to ben- efits accrued under such plan for serv- ices performed before the election. For purposes of this paragraph (a)(7), the term excess benefit plan means all non- qualified deferred compensation plans in which a service provider partici- pates, to the extent such plans do not provide for an election between current compensation (including a short-term deferral) and deferred compensation and solely provide deferred compensa- tion equal to the excess of the benefits the service provider would have ac- crued under a qualified employer plan (as defined in § 1.409A–1(a)(2)) in which the service provider also participates, in the absence of one or more of the limits incorporated into the plan to re- flect one or more of the limits on con- tributions or benefits applicable to the qualified employer plan under the In- ternal Revenue Code, over the benefits the service provider actually accrues under the qualified employer plan. For purposes of this paragraph (a)(7), once a service provider has accrued a benefit or deferred compensation under a plan in any year, the service provider will not become eligible for an initial defer- ral election based upon an accrual or deferral under an excess benefit plan in a subsequent year, even if the benefit or deferred compensation accrued in a previous year is forfeited or elimi- nated.