Common use of Exclusion of Eligible Employees In a Profit-Sharing Plan Clause in Contracts

Exclusion of Eligible Employees In a Profit-Sharing Plan. (a) Correction Methods. (i) VCS Correction Method. Appendix A, section .05 sets forth the VCS correction method for correcting the exclusion of an eligible employee. In the case of a defined contribution plan, the VCS correction method is to make a contribution on behalf of the excluded employee. Section 2.02(2)(a)(ii) below clarifies the VCS correction method in the case of a profit-sharing or stock bonus plan that provides for nonelective contributions (within the meaning of □ 1.401(k)-1(g)(10)).

Exclusion of Eligible Employees In a Profit-Sharing Plan. (a) Correction Methods. (i) VCS Correction Method. Appendix A, section .05 sets forth the VCS correction method for correcting the exclusion of an eligible employee. In the case of a defined contribution plan, the VCS correction method is to make a contribution on behalf of the excluded employee. Section 2.02(2)(a)(ii) below clarifies the VCS correction method in the case of a profit-sharing or stock bonus plan that provides for nonelective contributions (within the meaning of □  1.401(k)-1(g)(10)).

Exclusion of Eligible Employees In a Profit-Sharing Plan. (a) Correction Methods. (i) VCS Correction Method. Appendix A, section .05 sets forth the VCS correction method for correcting the exclusion of an eligible employee. In the case of a defined contribution plan, the VCS correction method is to make a contribution on behalf of the excluded employee. Section 2.02(2)(a)(ii) below clarifies the VCS correction method in the case of a profit-sharing or stock bonus plan that provides for nonelective contributions (within the meaning of □ . 1.401(k)-1(g)(10)).