Correction of Excess Contributions. If the Plan fails the ADP Test for a Plan Year, the Plan Administrator may use any combination of the correction methods under this Section to correct the Excess Contributions under the Plan. (See Section 17.7(d) for the definition of Excess Contributions.)
Correction of Excess Contributions. In the case of a distribution of excess contributions, the Plan shall distribute pre-tax Deferrals and earnings thereon first.
Correction of Excess Contributions. The distribution of any excess contributions made with respect to the 2011 Plan Year shall first be made from elective deferrals other than a Nu Horizons Member's Xxxx 401(k) Contributions then from his Xxxx 401(k) Contributions.
Correction of Excess Contributions. 7.3.1 Elective Deferrals that are in excess of the limitations under Code section 402(g), or that cause excess Contributions under Code section 415(c), will be returned, with earnings allocable thereto, not later than the April 15 of the year following the year in which they were contributed, upon (a) timely receipt of written instruction from the Plan Administrator or You; or (b) in the absence of such written instruction, upon determination by the Custodian that an excess exists, based solely on the Custodian’s records.
Correction of Excess Contributions. Excess Contributions must be corrected by using one or a combination of the following methods:
Correction of Excess Contributions. If the Elective Contributions made on behalf of Participants would cause the Plan to exceed the limits under section 401(k)(3) of the Code, the Administrator may limit the amount of Elective Contributions to be made with respect to any Highly Compensated Employee. If such limits have not been met for any Plan Year after all contributions for such Year have been made, then any excess contributions and any allocable income, gain or loss shall be distributed to the affected Participants no later than 12 months after the close of the Plan Year in which the excess contribution was made. If a distribution becomes necessary, it will be first applied to the Participant who is the Highly Compensated Employee having the highest actual deferral percentage, until the limits of section 401(k)(3) are met or until such Participant's actual deferral percentage is reduced to the same percentage level as that of the Participant who is the Highly Compensated Employee having the next highest actual deferral percentage. If further limitations are required, the process shall be repeated until the limits of section 401(k)(3) are met. The amount of excess contributions for any Highly Compensated Employee shall be determined as the amount of his or her Elective Contributions for the Plan Year, less the product of (i) his or her reduced actual deferral ratio and (ii) his or her Compensation.
Correction of Excess Contributions. 26 5.4 Limit on Deferrals.................................................................... 28 5.5 Limit on Annual Additions............................................................. 29 TABLE OF CONTENTS PAGE ---- ARTICLE VI ACCOUNT ADMINISTRATION................................................................ 32 6.1 Plan Accounts and Allocation of Contributions......................................... 32 6.2 Allocation of Investment Earnings and Losses.......................................... 33
Correction of Excess Contributions. If the Average ADP or the Average ACP (or both) of the group of Highly Compensated Employees exceeds the limits of Section 5.2 for any Plan Year, the Committee shall take one or more of the actions described in this Section as it deems appropriate in order to meet the limits of Section 5.2 for such Plan Year.
Correction of Excess Contributions. (1) The Committee shall be authorized to implement rules authorizing or requiring reductions in the Pre-Tax Savings and Xxxx Savings contributions that may be made on behalf of Highly Compensated Employees during the Plan Year (prior to any contributions to the Trust) so that the limitation of Paragraph (b) is satisfied.
Correction of Excess Contributions. Any amount you contribute for a tax year that exceeds the allowable contribution amount is an excess contribution and subject to a 6% penalty tax for each year it remains in your Xxxx XXX. You may avoid the penalty tax if you remove the excess contribution along with the net income attributable to the excess before your tax return due date, plus extensions. For assistance in calculating the net income attributable to an excess contribution using an IRS-approved method, refer to Treasury Regulation 1.408-11, IRS Pub. 590-A and/or your tax advisor. The net income must be included in your taxable income. If you are under age 59½ and do not qualify for an exception, the net income is also subject to the IRS 10% premature distribution penalty. File IRS Form 5329 to pay any excise taxes you owe. To correct an excess contribution after your tax filing due date (plus extensions), you may withdraw the excess amount (no earnings need to be withdrawn). Alternatively, if you are eligible to contribute in a subsequent year, you may correct the excess amount by redesignating the amount to a subsequent year. Regardless of which method you use to correct the excess after your tax return due date, plus extensions, the 6% penalty is required for each year it remained in the Xxxx XXX.
