Limitation on Employer Contributions. The maximum employer contribution which may be made for any one Plan Year with respect to any Participant and allocated to each Participant's IRA is the lesser of 25% of such Participant's Compensation for the Plan Year or $40,000 as adjusted under Code § 415(d). For purposes of the 25% limitation described in the preceding sentence, a participant's compensation does not include any elective deferral described in Code § 402(g)(3) or any amount that is contributed by the employer at the election of the employee and that is not includible in the gross income of the employee under Code §§ 125, 132(f)(4) or 457.
Appears in 8 contracts
Samples: Custodial Agreement, Simplified Employee Plan Agreement, Custodial Agreement
Limitation on Employer Contributions. The maximum employer contribution which may be made for any one Plan Year with respect to any Participant and allocated to each Participant's IRA XXX is the lesser of 25% of such Participant's Compensation for the Plan Year or $40,000 as adjusted under Code § 415(d). For purposes of the 25% limitation described in the preceding sentence, a participant's compensation does not include any elective deferral described in Code § 402(g)(3) or any amount that is contributed by the employer at the election of the employee and that is not includible in the gross income of the employee under Code §§ 125, 132(f)(4) or 457.
Appears in 3 contracts
Samples: Prototype Simplified Employee Prototype Plan, Prototype Simplified Employee Prototype Plan, Prototype Simplified Employee Prototype Plan
