FAILURE OF PLAN QUALIFICATION Clause Samples
The "Failure of Plan Qualification" clause addresses the situation where a retirement or benefit plan does not meet the requirements for tax-qualified status under applicable law. This clause typically outlines the consequences if the plan loses its qualified status, such as potential tax liabilities for participants or the employer, and may specify remedial actions or responsibilities for correcting the failure. Its core function is to allocate risk and clarify the parties' obligations in the event the plan's tax-advantaged status is jeopardized, thereby protecting both the employer and employees from unexpected tax consequences.
FAILURE OF PLAN QUALIFICATION. If the Plan fails to retain its qualified status, the Plan will no longer be considered to be part of a prototype plan, and such Employer can no longer participate under this prototype. In such event, the Plan will be considered an individually designed plan.
FAILURE OF PLAN QUALIFICATION. If the Plan fails to retain its qualified status, the Plan will no longer be considered to be part of a prototype plan, and such Employer can no longer participate under this prototype. In such event, the Plan will be considered an individually designed plan. SECTION TEN MISCELLANEOUS
10.01 STATE COMMUNITY PROPERTY LAWS The terms and conditions of this Plan shall be applicable without regard to the community property laws of any state.
FAILURE OF PLAN QUALIFICATION. If the Plan fails to retain its qualified status, the Plan will no longer be considered to be part of a prototype plan, and such Employer can no longer participate under this prototype. In such event, the Plan will be considered an individually designed plan. SECTION TEN MISCELLANEOUS
10.01 STATE COMMUNITY PROPERTY LAWS The terms and conditions of this Plan shall be applicable without regard to the community property laws of any state.
10.02 HEADINGS The headings of the Plan have been inserted for convenience of reference only and are to be ignored in any construction of the provisions hereof.
10.03 GENDER AND NUMBER Whenever any words are used herein in the masculine gender they shall be construed as though they were also used in the feminine gender in all cases where they would so apply, and whenever any words are used herein in the singular form they shall be construed as though they were also used in the plural form in all cases where they would so apply.
FAILURE OF PLAN QUALIFICATION. If the Plan fails to satisfy the qualification requirements under Section 401(a) of the Code, the Plan will no longer be considered to be part of a prototype plan, and the Employer may no longer participate under this prototype. If that happens, the Plan will be considered an individually-designed plan. ARTICLE TEN-MISCELLANEOUS