First Year Testing Method Clause Samples

First Year Testing Method. If the first Plan Year that the Plan, other than a successor plan, permitted Deferral Contributions or provided for either Employee or Matching Employer Contributions, occurred on or after January 1, 1997 but prior to the Effective Date specified in Subsection 1.01(g)(2), the "ADP" and/or "ACP" test for such first Plan Year was applied using the actual "ADP" and/or "ACP" of Non-Highly Compensated Employees for such first Plan Year, unless otherwise provided below.

First Year Testing Method. If the first Plan Year that the Plan, other than a successor plan, permits Deferral Contributions or provides for Matching Employer Contributions, occurs on or after the Effective Date specified in Subsection 1.01(g), the “ADP” and/or “ACP” test for such first Plan Year shall be applied using the actual “ADP” and/or “ACP” of Non-Highly Compensated Employees for such first Plan Year, unless otherwise provided below. (1) ¨ The “ADP” and/or “ACP” test for the first Plan Year that the Plan permits Deferral Contributions or provides for Matching Employer Contributions shall be applied assuming a 3% “ADP” and/or “ACP” for Non-Highly Compensated Employees. (Do not choose unless Plan uses prior year testing method described in Subsection 1.06(a)(2).)

First Year Testing Method. If the first Plan Year that the Plan, other than a successor plan, permitted Deferral Contributions or provided for either Employee or Matching Employer Contributions, occurred on or after January 1, 1997 but prior to the Effective Date specified in Subsection 1.01(g)(2), the "ADP" and/or "ACP" test for such first Plan Year was applied using the actual "ADP" and/or "ACP" of Non-Highly Compensated Employees for such first Plan Year, unless otherwise provided below. (A) [ ] The "ADP" and/or "ACP" test for the first Plan Year that the Plan permitted Deferral Contributions and/or provided for either Employee or Matching Employer Contributions was applied assuming a 3% "ADP" and/or "ACP" for Non-Highly Compensated Employees. (B) THE FOLLOWING PROVISIONS ARE EFFECTIVE AS OF THE FOLLOWING DATES, EXCEPT AS OTHERWISE PROVIDED IN THE APPLICABLE SUBSECTION(S) (A): (1) The definition of "Required Beginning Date" in Subsection 2.01(tt) is effective January 1, 1997. (A) [ ] Later effective date applicable to the definition of Required Beginning Date in Subsection 2.01(tt): ________ (CANNOT BE LATER THAN THE JANUARY 1 FOLLOWING THE DATE SPECIFIED IN SUBSECTION 1.01(g)(2)). (2) The elimination of all family aggregation rules is effective for Plan Years beginning on or after January 1, 1997. (A) [ ] Later effective date applicable to elimination of family aggregation rules: _______ (CANNOT BE LATER THAN THE FIRST DAY OF THE PLAN YEAR IN WHICH THE DATE SPECIFIED IN SUBSECTION 1.01(g)(2) OCCURS). (3) The inclusion in Compensation for purposes of Code Section 415 of amounts excluded from gross income under a salary reduction agreement by reason of the application of Code Sections 125, 132(f)(4), 402(e)(3), 402(h), or 403(b), as provided in Subsection 6.12(d), is effective for Limitation Years beginning on or after January 1, 1998. (A) [ ] Later effective date applies to modification of definition of Compensation for Code Section 415 purposes: ___________ (CANNOT BE LATER THAN THE FIRST DAY OF THE LIMITATION YEAR IN WHICH THE DATE SPECIFIED IN SUBSECTION 1.01(G)(2) OCCURS).