☐ Matching Contribution Offset Clause Samples
A Matching Contribution Offset clause defines how an employer’s required contributions to a retirement or benefit plan can be reduced by amounts already contributed under another plan or arrangement. In practice, this means if the employer is obligated to make matching contributions to multiple plans, the contributions made to one plan may count toward fulfilling the obligation in another, preventing double payments. This clause ensures that the employer’s total matching contribution liability is not duplicated across different plans, thereby avoiding excess funding and clarifying the employer’s financial responsibilities.
☐ Matching Contribution Offset. For each Employee Participant who has made elective contributions (as defined in 26 CFR section 1.401(k)-6 (“QP Deferrals”)) of the maximum permitted under Code section 402(g), or the maximum permitted under the terms of the Plan (the “QP”), to the QP, the Employer shall make a Matching Contribution in an amount equal to (A) minus (B) below:
(A) The matching contributions (as defined in 26 CFR section 1.401(m)-1(a)(2) (“QP Match”)) that the Employee Participant would have received under the QP on the sum of the Deferral Contributions and the Participant’s QP Deferrals, determined as though— • no limits otherwise imposed by the tax law applied to such QP match; and • the Employee Participant’s Deferral Contributions had been made to the QP.
(B) The QP Match actually made to such Employee Participant under the QP for the applicable calendar year. Provided, however, that the Matching Contributions made on behalf of any Employee Participant pursuant to this Section 1.05(b)(2) shall be limited as provided in Section 4.02 hereof.
☐ Matching Contribution Offset. For each Participant who has made deferrals of at least the maximum amount allowed pursuant to Section 402(g) of the Code or the maximum allowed under the Employer's plan listed below to such plan, the Employer shall make a Matching Contribution in an amount equal to (A) minus (B) below:
(A) The Matching Employer Contribution, as defined in the Plan that the Participant would have received under the Plan on the sum of the Deferral Contributions and the Participant's deferrals hereunder, as defined therein, that the Participant actually made to such Plan, if no limits otherwise imposed by the Code, and regulations issued thereunder, applied to such Matching Employer Contribution and the Participant's Deferral Contributions are deemed to have been made to the Plan;
(B) The Matching Employer Contributions actually made to such Participant under the Plan for the Plan Year of the determination of the Matching Contribution hereunder.
☐ Matching Contribution Offset. For each Participant who has made 401(k) Deferrals at least equal to the maximum under Code Section 402(g) or, if less, the maximum permitted under the Qualified Plan, the Employer shall make a Matching Contribution for the calendar year equal to (A) minus (B) below:
(A) The 401(m) Match that the Participant would have received under the Qualified Plan for such calendar year on the sum of the Participant’s Deferral Contributions and the Participant’s 401(k) Deferrals if no limits otherwise imposed by tax law applied to 401(m) Match and deeming the Participant’s Deferral Contributions to be 401(k) Deferrals.
(B) The 401(m) Match actually allocated to such Participant under the Qualified Plan for the calendar year.