Common use of Inclusion of an Ineligible Employee Clause in Contracts

Inclusion of an Ineligible Employee. If, in any Plan Year, any person who should not have been included as a Participant in the Plan is erroneously included and discovery of such incorrect inclusion is not made until after a contribution for the year has been made, the Employer shall not be entitled to recover the contribution made with respect to the ineligible person regardless of whether or not a deduction is allowable with respect to such contribution. In such event, the amount contributed with respect to the ineligible person shall constitute a Forfeiture (except for Salary Deferral Contributions which shall constitute an excess elective deferral amount described in Code sections 401(a)(30) and 402(g)(1) and (2), and which shall be distributed to the ineligible person, adjusted for any gain or loss) for the Plan Year in which the discovery is made.

Inclusion of an Ineligible Employee. If, in any Plan Year, any person who should not have been included as a Participant in the Plan is erroneously included and discovery of such incorrect inclusion is not made until after a contribution for the year has been made, the Employer shall not be entitled to recover the contribution made with respect to the ineligible person regardless of whether or not a deduction is allowable with respect to such contribution. In such event, the amount contributed with respect to the ineligible person shall constitute a Forfeiture (except for Salary Deferral Contributions and Xxxx 401(k) Contributions which shall constitute an excess elective deferral amount described in Code sections 401(a)(30) and 402(g)(1) and (2), and which shall be distributed to the ineligible person, adjusted for any gain or loss) for the Plan Year in which the discovery is made.