Discretionary Contributions. (a) The Employer □ may / X may not (check one) make additional discretionary contributions to Participants’ Accounts. (b) Participants shall vest in discretionary contributions on the following basis (check one): □ Immediate, 100% vesting □ Graded vesting at a rate of 20% per year (100% at 5 years) □ Other (please specify an alternative vesting schedule): Note: Under regulations issued by the Internal Revenue Service, contributions, and earnings on these contributions that are subject to a vesting schedule are recognized as contributions to the Plan when these amounts vest. As a result, if an Employer elects to apply a vesting schedule, Participants may be deemed to have impermissible excess contributions to the Plan in the year in which contributions vest if the amounts vested during the year causes an excess deferral for that year. Employers should discuss this issue with independent legal counsel prior to electing to apply a vesting schedule. (c) The Employer □ will / □ will not (check one) make discretionary contributions for a Participant who dies while in qualified military service pursuant to and in a manner consistent with Code section 414(u)(9). This provision is effective (please specify a date no earlier than January 1, 2007). (d) The Employer □ will / □ will not (check one) make discretionary contributions for a Participant who becomes disabled while in qualified military service pursuant to and in a manner consistent with Code section 414(u)(9). This provision is effective (please specify a date no earlier than January 1, 2007).
Appears in 6 contracts
Samples: Adoption Agreement, Adoption Agreement, Adoption Agreement
