Correction of Excess Aggregate Contributions Sample Clauses

Correction of Excess Aggregate Contributions. If the Plan fails the ACP Test for a Plan Year, the Plan Administrator may use any combination of the correction methods under this Section to correct the Excess Aggregate Contributions under the Plan. (See Section 17.7(c) for the definition of Excess Aggregate Contributions.)
Sample 1Sample 2Sample 3
AutoNDA by SimpleDocs
Correction of Excess Aggregate Contributions. The amount of Excess Aggregate Contributions for a Highly Compensated Participant for a Plan Year is to be determined by the following leveling method, under which the Actual Contribution Percentage of the Highly Compensated Participant with the highest Nondeductible Employee and Matching Contributions is reduced to the extent required to enable the Plan to satisfy the Actual Contribution Percentage Test. For each Highly Compensated Participant, the amount of Excess Aggregate Contributions is the excess of the aggregate amount of the Nondeductible Employee Contributions and Matching Contributions and contributions treated as Matching Contributions (determined prior to the application of this paragraph) actually made on behalf of Highly Compensated Employees for the Plan Year, over the maximum amount of such contributions permitted under the Actual Contribution Percentage Test (determined by reducing the contributions made on behalf of Highly Compensated Employees in order of their Actual Contribution Percentage amounts beginning with the Highly Compensated Employee with the largest amount and continuing in descending order until all the Excess Aggregate Contributions have been allocated.) For purposes of subsections (a) and (c) of this Section 3.09, Matching Contributions forfeited as a result of a correction or return of Excess Deferrals (determined pursuant to Section 3.06) or Excess Contributions (determined pursuant to the test described in Section 3.05) shall be credited for purposes of reducing any Excess Aggregate Contributions.
Sample 1Sample 2
Correction of Excess Aggregate Contributions. Corrections of Excess Aggregate Contributions will be made by (i) determining the amount of the total Excess Aggregate Contributions that must be forfeited or distributed in order to meet the Actual Contribution Percentage test, and then (ii) reducing the dollar amount of contributions taken into account in determining the Actual Contribution Percentage of the Highly Compensated Employee(s) who has (have) the highest dollar amount of Excess Aggregate Contributions to the level of the Highly Compensated Employee(s) with the next highest dollar amount of Excess Aggregate Contributions. The resulting reduction in such contributions will be forfeited or returned to the affected Highly Compensated Employee(s). However, if a lesser reduction, when added to the total amount distributed under step (ii) would equal the total Excess Aggregate Contributions, then the lesser amount will be forfeited or distributed. If the total amount forfeited or distributed is less than the total Excess Aggregate Contributions, then step (ii) will be repeated as many times as necessary. Excess Aggregate Contributions, plus or minus any allocable income or loss, will be paid to the Participants to whose Accounts they were allocated, no later than the last day of the Plan Year following the Plan Year for which they were allocated. If such payments are insufficient to effect the necessary correction, Excess Aggregate Contributions, plus or minus any allocable income or loss, will be forfeited, if otherwise forfeitable under the terms of the Plan. If the payments (or forfeitures) are made more than 2 1/2 months after the last day of the Plan Year for which the Excess Aggregate Contributions were allocated, the Employer will be subject to a 10% excise tax. Excess Aggregate Contributions will be adjusted for income or loss allocable to them for the Plan Year in which they were allocated, using a method used for allocating income and loss to Participants' Accounts, applied consistently for all Participants and for all corrective distributions under the Plan for the Plan Year. Income or loss allocable to the period between the end of the Plan Year for which the Excess Aggregate Contributions were allocated and the date they are distributed will be disregarded. If the rate of Matching Contribution to a Highly Compensated Employee (determined as a percentage of Compensation, after all corrective measures have been taken under the other provisions of this Article) violates the discrimination r...
Sample 1
Correction of Excess Aggregate Contributions. If the Employee or Matching Contributions made on behalf of Participants would cause the Plan to exceed the limits under section 401(m)(2) of the Code, the Administrator may limit the amount of such Contributions to be made with respect to any Highly Compensated Employee. If such limits have not been met for a Plan Year after all contributions for the Plan Year have been made, then any excess aggregate contributions and any allocable income, gain or loss shall be returned to the affected Participants no later than 12 months after the close of the Plan Year in which the excess aggregate contribution was made. If a distribution becomes necessary, it will be first applied to the Participant who is the Highly Compensated Employee with the highest actual contribution ratio, until the limits of Code section 401(m)(2) are met or until such Participant's actual contribution ratio is reduced to the same percentage level as that of the Participant who is the Highly Compensated Employee having the next highest actual contribution ratio. If further limitations are required, this process shall be repeated until the tests of section 401(m)(2) are met. The amount of excess aggregate contributions for any Highly Compensated Employee shall be determined as the amount of Employee and Matching Contributions made with respect to the Employee, less the product of (i) his or her reduced actual contribution ratio and (ii) his or her Compensation. Distributions of excess aggregate contributions shall be made first from unmatched Employee Contributions and only then from matched Employee Contributions and Matching Contributions. A Participant's excess aggregate contributions will be designated by the Administrator as a distribution of excess aggregate contributions. Excess aggregate contributions shall be allocated to Participants who are subject to the family aggregation rules of section 414(q)(6) of the Code in the manner prescribed by applicable Treasury Regulations. The Administrator shall maintain such records as are necessary to demonstrate compliance with the tests of section 401(m)(2) of the Code.
Sample 1
Correction of Excess Aggregate Contributions. (1) If the limitation under Paragraph (d) is exceeded, an Employer may, in the discretion of the Committee, make additional contributions to the accounts of eligible Employees who are not Highly Compensated Employees up to an amount necessary to assure that the limitation under Paragraph (d) is satisfied, which additional contributions shall either be Qualified Nonelective Contributions. The Employer shall maintain such records as necessary to demonstrate compliance with the limitations of Paragraph (d), including records showing the extent to which Qualified Nonelective Contributions are taken into account in applying such limitations. (2) If the limitation under Paragraph (d) continues to be exceeded following such Qualified Nonelective Contributions, if any, the amount of the Excess Aggregate Contributions attributable to After-Tax Savings contributions and any income attributable to such amounts shall be distributed to eligible Highly Compensated Employees. (3) All Excess Aggregate Contributions and any income allocable thereto shall be distributed, as described above, as soon as practicable after the close of the Plan Year, but no later than twelve months after the close of the Plan Year in which they occur. (4) The Committee is authorized to implement rules under which it may utilize any combination of the methods described in the foregoing Subparagraphs (e)(1), (e)(2), and (e)
Sample 1
Correction of Excess Aggregate Contributions 
Sample 1Sample 2Sample 3See All (7)

Related to Correction of Excess Aggregate Contributions

  • Excess Contributions An excess contribution is any amount that is contributed to your IRA that exceeds the amount that you are eligible to contribute. If the excess is not corrected timely, an additional penalty tax of six percent will be imposed upon the excess amount. The procedure for correcting an excess is determined by the timeliness of the correction as identified below.

  • How Do I Correct an Excess Contribution? If you make a contribution in excess of your allowable maximum, you may correct the excess contribution and avoid the 6% penalty tax for that year by withdrawing the excess contribution and its earnings on or before the date, including extensions, for filing your tax return for the tax year for which the contribution was made (generally October 15th). Any earnings on the withdrawn excess contribution may also be subject to the 10% early distribution penalty tax if you are under age 59½. In addition, although you will still owe penalty taxes for one or more years, excess contributions may be withdrawn after the time for filing your tax return. Excess contributions for one year may be carried forward and applied against the contribution limitation in succeeding years. An individual who is partially or entirely ineligible to make contributions to a Xxxx XXX may transfer amounts of up to the yearly contribution limits to a non-deductible Traditional IRA (subject to reduction for amounts remaining in the Xxxx XXX plus other Traditional IRA contributions).

  • Employer Contributions 16.01 Employer contributions shown in the tables in the attached appendices shall be made on all hours of work performed which are included in computing the eight (8) hours per day and forty (40) hours per week after which overtime is payable and shall be recorded on a standard remittance report provided by the Union and remitted on or before the fifteenth (15th) day of the month following the month for which contributions are due and payable, to the Trust Funds. Hours of work performed are interpreted to mean daily travel time, daily working time, reporting time, and, if the employee is required to perform a welding test, testing time. Contributions for overtime hours will be calculated as straight time hours. The Employer shall provide each employee covered by this Agreement with a statement with each weekly paycheque stating the total number of hours reported for contributions to the Pension and Health & Welfare Funds on behalf of that employee for the period covered by the paycheque. 16.02 All such funds due and payable to the above funds shall be deemed and are considered to be Trust Funds. It is expressly understood that training funds are not wages or benefits due to an employee and industry promotion funds are deemed to be dues for services rendered by the Association. 16.03 The Board of Trustees of the respective Trust Funds shall have authority to promulgate such agreements, plans and/or rules as may be necessary or desirable for the efficient and successful operation and administration of the said Trust Fund, including provisions for an audit, security, surety and/or liquidated damages to the extent that such may be necessary for the protection of the beneficiaries of such Trust Funds. In the event that any Employer is delinquent in his contributions to the above funds for more than thirty (30) days, the Employer and the Association shall be notified of such delinquency. If after five (5) days from such notice such delinquency has not been paid, the Employer shall pay to the applicable funds as liquidated damages, and not as a penalty, an amount equal to ten percent (10%) of the arrears for the month, or part thereof, in which the Employer is in default. Thereafter interest shall accumulate at the rate of two percent (2%) per month (24% per year compounded monthly) on any unpaid arrears, including liquidated damages. 16.04 Any and all agreements, plans or rules established by the Boards of Trustees of the respective Trust Funds shall be appended hereto and shall be deemed to be part of and expressly incorporated herein and the Employer and the Union shall be bound by the terms and provisions thereof. 16.05 The Employer shall not be required to make additional contributions or payments to any Industry Funds established by the Union or its Local Unions nor to any such funds established by Provincial or Territorial Government orders, regulations, or decrees for the purpose of providing similar benefits, it being understood and agreed that the contributions for herein, or any portions thereof shall be deemed to be in lieu of and/or shall be applied as payments to such funds. This provision shall not be applicable to any national funds or plans having general application and established by an Act of the Government of Canada. 16.06 In the Province of Ontario, the Trustees/Administrator of the employee benefit funds referred to in this Agreement shall promptly notify the Local Union of the failure by any Employer to pay any employee benefit contributions required to be made under this Agreement and which are owed under the said funds in order that the Program Administrator of the Ontario Employee Wage Protection Program may deem that there has been an assignment of compensation under the said Program in compliance with the Regulations to the Ontario Employment Standards Amendment Act, 1991, in relation to the Ontario Employee Wage Protection Program. 16.07 The parties hereto agree that contribution rates for the trust funds listed herein do not include any Provincial or Federal taxes.

  • Catch-Up Contributions In the case of a Traditional IRA Owner who is age 50 or older by the close of the taxable year, the annual cash contribution limit is increased by $1,000 for any taxable year beginning in 2006 and years thereafter.

  • Employer Contribution (a) An Employer contribution for health and dental benefits will only be made for each active employee who has at least eighty (80) paid regular hours in a month and who is eligible for medical insurance coverage, unless otherwise required by law. (b) It is understood that the administrative intent of this Article is that the Employer contribution is made for individuals who are participants in the medical insurance coverages. Participation will mean that eligible less-than-full-time employees who drop out of coverage will be considered to participate. Additionally, employees who elect to opt out of coverage for a cash incentive will be considered to participate.

  • Payments from Available Funds Only All payments to be made by the Borrower under this Agreement shall be made only from the amounts that constitute Scheduled Payments, Special Payments and other payments under the Operative Agreements, including payment under Section 4.02 of the Participation Agreements and payments under Section 2.14 of the Indentures, and only to the extent that the Borrower shall have sufficient income or proceeds therefrom to enable the Borrower to make payments in accordance with the terms hereof after giving effect to the priority of payments provisions set forth in the Intercreditor Agreement. The Liquidity Provider agrees that it will look solely to such amounts to the extent available for distribution to it as provided in the Intercreditor Agreement and this Agreement and that the Borrower, in its individual capacity, is not personally liable to it for any amounts payable or liability under this Agreement except as expressly provided in this Agreement, the Intercreditor Agreement or any Participation Agreement. Amounts on deposit in the Class A Cash Collateral Account shall be available to the Borrower to make payments under this Agreement only to the extent and for the purposes expressly contemplated in Section 3.05(f) of the Intercreditor Agreement.

  • Allocation of Applied Realized Loss Amounts Any Applied Realized Loss Amounts shall be allocated by the Trustee to the most junior Class of Subordinated Certificates then Outstanding in reduction of the Class Certificate Balance thereof.

  • Can I Roll Over or Transfer Amounts from Other IRAs or Employer Plans If properly executed, you are allowed to roll over a distribution from one Traditional IRA to another without tax penalty. Rollovers between Traditional IRAs may be made once every 12 months and must be accomplished within 60 days after the distribution. Beginning in 2015, just one 60 day rollover is allowed in any 12 month period, inclusive of all Traditional, Xxxx, SEP, and SIMPLE IRAs owned. Under certain conditions, you may roll over (tax-free) all or a portion of a distribution received from a qualified plan or tax-sheltered annuity in which you participate or in which your deceased spouse participated. In addition, you may also make a rollover contribution to your Traditional IRA from a qualified deferred compensation arrangement. Amounts from a Xxxx XXX may not be rolled over into a Traditional IRA. If you have a 401(k), Xxxx 401(k) or Xxxx 403(b) and you wish to rollover the assets into an IRA you must roll any designated Xxxx assets, or after tax assets, to a Xxxx XXX and roll the remaining plan assets to a Traditional IRA. In the event of your death, the designated beneficiary of your 401(k) Plan may have the opportunity to rollover proceeds from that Plan into a Beneficiary IRA account. In general, strict limitations apply to rollovers, and you should seek competent advice in order to comply with all of the rules governing rollovers. Most distributions from qualified retirement plans will be subject to a 20% withholding requirement. The 20% withholding can be avoided by electing a “direct rollover” of the distribution to a Traditional IRA or to certain other types of retirement plans. You should receive more information regarding these withholding rules and whether your distribution can be transferred to a Traditional IRA from the plan administrator prior to receiving your distribution.

  • Allocation of Excess Nonrecourse Liabilities For purposes of determining a Holder’s proportional share of the “excess nonrecourse liabilities” of the Partnership within the meaning of Regulations Section 1.752-3(a)(3), each Holder’s respective interest in Partnership profits shall be equal to such Holder’s Percentage Interest with respect to Partnership Common Units, except as otherwise determined by the General Partner.

  • Matching Contributions The Employer will make matching contributions in accordance with the formula(s) elected in Part II of this Adoption Agreement Section 3.01.

Draft better contracts in just 5 minutes Get the weekly Law Insider newsletter packed with expert videos, webinars, ebooks, and more!