Common use of Multiple Use Clause in Contracts

Multiple Use. For Plan Years beginning after the Final Compliance Date, if (i) one or more Highly Compensated Employees participates both in a plan with a qualified cash or deferred arrangement which is subject to the ADP limitations under Code section 401(k) as described in section 7.4 and in a plan which is subject to the ACP limitations under Code section 401(m) as described in this section 7.5, (ii) the sum of the ADP of the eligible Highly Compensated Employees in the plan subject to Code section 401(k) and the ACP of the eligible Highly Compensated Employees in the plan subject to Code section 401(m) exceeds the Aggregate Limit, and (iii) both the ADP and the ACP of the eligible Highly Compensated Employees in such plans exceed 125% of the ADP or ACP respectively of the eligible Nonhighly Compensated Employees in such plans, then the Contribution Percentages of the Highly Compensated Employees who participate in both such plans shall be reduced (beginning with the highest of such percentages) so that the Aggregate Limit for such plans is not exceeded. Any such reduction shall be treated as an Excess Aggregate Contribution. The determination of the limitations under this special rule shall be made after any corrections required to meet the ADP limits and the ACP limits and in accordance with the regulations under Code section 401(m).

Multiple Use. For Plan Years beginning after the Final Compliance Date, if (i) one or more Highly Compensated Employees participates both in a plan with a qualified cash or deferred arrangement which is subject to the ADP limitations under Code section 401(k(S)401(k) as described in section 7.4 (S)7.4 and in a plan which is subject to the ACP limitations under Code section 401(m(S)401(m) as described in this section 7.5(S)7.5, (ii) the sum of the ADP of the eligible Highly Compensated Employees in the plan subject to Code section 401(k(S)401(k) and the ACP of the eligible Highly Compensated Employees in the plan subject to Code section 401(m(S)401(m) exceeds the Aggregate Limit, and (iii) both the ADP and the ACP of the eligible Highly Compensated Employees in such plans exceed 125% of the ADP or ACP respectively of the eligible Nonhighly Compensated Employees in such plans, then the Contribution Percentages of the Highly Compensated Employees who participate in both such plans shall be reduced (beginning with the highest of such percentages) so that the Aggregate Limit for such plans is not exceeded. Any such reduction shall be treated as an Excess Aggregate Contribution. The determination of the limitations under this special rule shall be made after any corrections required to meet the ADP limits and the ACP limits and in accordance with the regulations under Code section 401(m(S)401(m).