FORFEITURE ALLOCATION METHOD (3 Clause Samples
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FORFEITURE ALLOCATION METHOD (3. 07). (select one of (a) or (b).): [Note: Even if the Employer elects immediate vesting, the Employer should complete Election 33. See Section 7.07. Election can be omitted if the plan is frozen or the plan is a 401(k) plan with no employer contributions]
(a) [ ] Safe harbor/top-heavy exempt. Apply all forfeitures to Safe Harbor Contributions and Plan expenses in accordance with Section 3.07(A)(4). (may only be selected with 401(k) plans)
(b) [X] Apply to Contributions. The Plan Administrator will allocate a Participant forfeiture as follows: (select one or more of (1) through (7). Select Contribution Type as applicable):
(1) (2) (3) All Nonelective Matching Forfeitures Forfeitures Forfeitures
(1) [ ] All. Use as described in (2) through (6). [ ] OR [ ] [ ]
((1) may not be selected with (2) through (6))
(2) [ ] Additional Nonelective. Added to Nonelective Contributions [ ] OR [ ] [ ] and allocated in the same manner.
(3) [ ] Additional Match. Added to Matching Contributions [ ] OR [ ] [ ] and allocated in the same manner.
(4) [ ] Reduce Nonelective. Apply to reduce Nonelective Contribution. [ ] OR [ ] [ ]
(5) [X] Reduce Match. Apply to reduce Matching Contribution. [X] OR [ ] [ ]
(6) [X] Plan expenses. Pay reasonable Plan expenses. [X] OR [ ] [ ] (See Section 7.04(C).) (must be selected with another election)
(7) [ ] Describe: (must satisfy the definitely determinable requirement under Treas. Reg. §1.401-1(b) and be applied in a uniform and nondiscriminatory manner; e.g., Forfeitures attributable to transferred balances from Plan X are allocated only to former Plan X participants.)
FORFEITURE ALLOCATION METHOD (3. 07). The Plan Administrator will allocate a Participant forfeiture attributable to all Contribution Types or attributable to all Nonelective Contributions or to all Matching Contributions as follows (Choose one or more of (a) through (g) as applicable. Choose (e) only in conjunction with at least one other election): [Note: Even if the Employer elects immediate vesting, the Employer should complete Election 33. See Section 7.07.] (1) (2) (3)
(a) x Additional Nonelective. Allocate as additional Discretionary Nonelective Contribution. x OR o o
(b) o Additional Match. Allocate as additional Discretionary Matching Contribution. o OR o o
(c) o Reduce Nonelective. Apply to Nonelective Contribution. o OR o o
(d) o Reduce Match. Apply to Matching Contribution. o OR o o (e) o Plan expenses. Pay reasonable Plan expenses first (See Section 7.04(C)), then allocate in the manner described above. o OR o o
FORFEITURE ALLOCATION METHOD (3. 07). The Plan Administrator will allocate a Participant forfeiture attributable to all Contribution Types or attributable to all Nonelective Contributions or to all Matching Contributions as follows (Choose one or more of (a) through (g) as applicable. Choose (e) only in conjunction with at least one other election): [Note: Even if the Employer elects immediate vesting, the Employer should complete Election 33. See Section 7.07.] (1) (2) (3) All Nonelective Matching Forfeitures Forfeitures Forfeitures
(a) ¨ Additional Nonelective. Allocate as additional Discretionary Nonelective Contribution. ¨ OR ¨ ¨ (b) ¨ Additional Match. Allocate as additional Discretionary Matching Contribution. ¨ OR ¨ ¨
FORFEITURE ALLOCATION METHOD (3. 07). The Plan Administrator will allocate a Participant forfeiture attributable to all Contribution Types or attributable to all Nonelective Contributions or to all Matching Contributions as follows (Choose one or more of (a) through (g) as applicable. Choose (e) only in conjunction with at least one other election):
(1) All Forfeitures (2) Nonelective Forfeitures (3) Matching Forfeitures
(a) ¨ Additional Nonelective. Allocate as additional Discretionary Nonelective Contribution. ¨ OR ¨ ¨ (b) ¨ Additional Match. Allocate as additional Discretionary Matching Contribution. ¨ OR ¨ ¨ (c) ¨ Reduce Nonelective. Apply to Nonelective Contribution. ¨ OR ¨ ¨ (d) ¨ Reduce Match. Apply to Matching Contribution. ¨ OR ¨ ¨ (e) ¨ Plan expenses. Pay reasonable Plan expenses first (See Section 7.04(C)), then allocate in the manner described above. ¨ OR ¨ ¨
FORFEITURE ALLOCATION METHOD (3. 07). The Plan Administrator will allocate a Participant forfeiture attributable to all Contribution Types or attributable to all Nonelective Contributions or to all Matching Contributions as follows (Choose one or more of (a) through (f) as applicable. Choose (e) only in conjunction with at least one other election.): [Note: Even if the Employer elects immediate vesting, the Employer should complete Election 24. See Section 7.07.]
(a) [ ] Additional Nonelective. Allocate as additional Discretionary Nonelective Contribution.
(b) [ ] Additional Match. Allocate as additional Matching Contribution.
(c) [ ] Reduce Nonelective. Apply to Nonelective Contribution.
(d) [ ] Reduce Match. Apply to Matching Contribution.
(e) [ ] Plan expenses. Pay reasonable Plan expenses first (See Section 7.04(C)), then allocate in the manner described above.
(f) [ ] Describe: (e.g., Forfeitures attributable to transferred balances from Plan X are allocated only to former Plan X participants OR Nonelective forfeitures are allocated as additional Nonelective Contributions and Matching forfeitures are allocated as additional Matching Contributions).