Initial Elections. An Employee who meets the eligibility requirements of Section 2.1 on the first day of, or during, a Plan Year may elect to participate in this Plan for all or the remainder of such Plan Year, provided he/she elects to do so before his/her Effective Date of participation pursuant to Section 2.2, or for a newly eligible Employee, no more than 30 days after their date of hire. For any such newly eligible Employee, if coverage is effective as of the date of hire pursuant to Section 2.1 above, such Employee shall be eligible to participate retroactively as of their date of hire. Newly eligible Employee Election amounts will be collected on the first pay period on or after his/her election was received. However, if such employee does not complete an application to participate and Benefit election form and deliver it to the Administrator before such date, his/her Election Period shall extend 30 calendar days after such date, or for such further period as the Administrator shall determine and apply on a uniform and nondiscriminatory basis. However, any election during the extended 30-day election period pursuant to this Section 5.1 shall not be effective until the first pay period following the later of such Participant’s Effective Date of participation pursuant to Section 2.2 or the date of the receipt of the election form by the Administrator, and shall be limited to the Benefit expenses incurred for the balance of the Plan Year for which the election is made.
Initial Elections. If the Plan Sponsor has elected in the Adoption Agreement to allow a Participant to elect a separate form and timing of distribution for each Class Year Account under the Plan, the Participant shall elect the form and timing of payment of each Class Year Account at the time the Participant submits (or is required to submit, in accordance with Section 2.3 and Code § 409A) his or her Compensation Deferral Agreement for the Taxable Year for which the Class Year Account is established. If the Plan Sponsor has not elected in the Adoption Agreement to allow a Participant to elect a separate form and timing of distribution for each Class Year Account under the Plan, the Participant shall elect the form and timing of payment of his or her Account at the earlier of (a) the time the Participant submits (or is required to submit, in accordance with Section 2.3 and Code § 409A) his or her Compensation Deferral Agreement for the Taxable Year for which the Class Year Account is established, or (b) the December 31 preceding the Taxable Year in which the services giving rise to the Participant’s first Matching Credits or Discretionary Credits to be earned under the Plan are to be performed (unless a later date is permitted in accordance with the provisions of Code § 409A and Treas. Reg. § 1.409A- 2). If a Participant elects an in-service Interim Distribution Date, the Participant must make a new form and timing of payment election for Compensation Deferrals that may be credited to the Participant’s Account and for Matching Credits and/or Discretionary Credits that may be earned during and after the Taxable Year in which falls the in-service Interim Distribution Date. Such election (a) must be made prior to the beginning of the Taxable Year in which the services giving rise to the earliest Compensation Deferrals, Matching Credits or Discretionary Credits subject to the new form and timing of payment election are to be performed and (b) is subject to rules generally applicable to form and timing of payment elections under this Plan.
Initial Elections. Notwithstanding Section 5 of the Agreement, the Consultant shall have the right to defer all or any portion of the Consultant Compensation that he would otherwise be entitled to receive in a calendar year by filing an Initial Election at the time and in the manner described in this Section 2. The Consultant Compensation for a calendar year shall be reduced in an amount equal to the portion of the Consultant Compensation deferred by the Consultant for such calendar year pursuant to the Consultant's Initial Election.
Initial Elections. When this Agreement is executed by Executive and Employer, Executive may make the following elections:
Initial Elections. Under prior law, an employee was not in constructive receipt of the compensation until it was payable.38 This was true even if the employee had already performed the services.39 Under § 409A, generally, the initial election to defer must be made before the close of the preceding taxable year.40 For example, if an employee wishes to defer compensation for services performed in 2009, a deferral election must have been made on or before December 31, 2008. I.R.C. § 409A does provide an exception if the current taxable year is the first year in which an employee is eligible to participate in the nonqualified deferred compensation plan.41 In this case, the employee must make the initial election within 30 days of becoming eligible to participate.42 For example, suppose an employee is hired by an employer on June 1, 2009. As a result of the employee’s hiring, he or she is eligible to participate in a nonqualified deferred compensation plan offered by the employer. Under § 409A, if the employee wishes to participate for 2009, the employee must make the election on or before July 1, 2009, which is 30 days after the June 1, 2009 eligibility date.
