Common use of Correction of Multiple Use Clause in Contracts

Correction of Multiple Use. (A) More than one plan: If a multiple use of the alternate limitation occurs with respect to two or more plans or arrangements maintained by the Employer, such multiple use shall be corrected by reducing the Actual Deferral Percentage of Highly Compensated Participants in the manner described in subparagraph (C) below. (B) To the extent that a Participant has unmatched Salary Deferral Contributions, the required reductions shall be from Salary Deferral Contributions; thereafter, Salary Deferral Contributions and Matching Contributions shall be reduced on a pro-rata basis. (C) The amount of the reduction to the Actual Deferral Percentage of the entire group of Highly Compensated Participants shall be calculated in the manner described in the Code section 401(k)(2) regulations, unless otherwise stipulated in the Adoption Agreement, so that there is no multiple use of the alternate limitation. Unless otherwise specified in the Adoption Agreement, only the Actual Deferral Percentages of all Highly Compensated Participants who are eligible in both the arrangement subject to Code section 401(k) and the Plan subject to Code section 401(m) shall be reduced.