Common use of Compensation Taken Into Account Clause in Contracts

Compensation Taken Into Account. If you wish to count a participant's full year's compensation (even if he or she entered the plan during the year), for contributions choose option (a), if not, choose option (b). Accrual Requirements - Specify the service requirements a participant must satisfy to receive an allocation. You may specify an hours of service requirement, no greater than 501 hours. Standardized plans have relaxed contribution requirements. A participant will receive an employer contribution and forfeitures if they meet either of the two requirements below. Requirement #1 If the Participant was employed on the last day of the plan year and worked for at least one hour during the plan year, or Requirement #2 If the Participant terminates employment during the plan year after working at least 501 hours for the employer.

Compensation Taken Into Account. If you wish to count a participant's full year's compensation (even if he or she entered the plan during the year), for contributions choose option (a), if not, choose option (b). Accrual Requirements - Specify the service requirements a participant must satisfy to receive an allocation. You may specify an hours of service requirement, no greater than 501 hours. Standardized plans have relaxed contribution requirements. A participant will receive an employer contribution and forfeitures if they meet either of the two requirements below. Requirement #1 If the Participant was employed on the last day of the plan year and worked for at least one hour during the plan year, or Requirement #2 If the Participant terminates employment during the plan year after working at least 501 hours for the employer.