Common use of Limits on Employer Contributions Clause in Contracts

Limits on Employer Contributions. Employer contributions for each Plan Year (including, if applicable, Elective Deferrals) shall be determined in accordance with the Adoption Agreement, but shall not exceed the maximum amount which shall constitute an allowable deduction under section 404(a) of the Code. Unless otherwise specified in the Adoption Agreement, Employer contributions may only be made out of Net Profits. If the Adoption Agreement provides that one or more Employer contributions may be made without regard to Net Profits, the Plan shall continue to be designed to qualify as a profit sharing plan for purposes of the Code.