NOTIFICATION OF DISALLOWED ELECTIVE. DEFERRALS The Employer shall notify each affected Participant, within 2 1/2 months after the end of the Plan Year to which the disallowed Elective Deferrals relate, that the deferrals are no longer considered SARSEP contributions. Such notification shall specify the amount of the disallowed Elective Deferrals and the Participant's calendar year in which they are includible in income. Additionally, the notice must provide an explanation of the applicable penalties if the disallowed Elective Deferrals are not withdrawn in a timely fashion. The notice to each affected Participant shall state the following: (a) The amount of the disallowed Elective Deferral; (b) That the disallowed Elective Deferrals are includible in the Participant's gross income for the calendar year or years in which the amounts deferred would have been received by the Participant in cash had she or he not made the election to defer, and that the income allocable to such disallowed Elective Deferrals is includible in the Participant's gross income in the year withdrawn from the SEP-IRA; xxd
Appears in 5 contracts
Samples: Sep and Sarsep Ira Adoption Agreement (Aim Equity Funds Inc), Sep and Sarsep Ira Adoption Agreement (Aim Investment Securities Funds Inc), Sep and Sarsep Ira Adoption Agreement (Aim International Funds Inc)
NOTIFICATION OF DISALLOWED ELECTIVE. DEFERRALS The Employer shall notify each affected Participant, within 2 1/2 months after the end of the Plan Year to which the disallowed Elective Deferrals relate, that the deferrals are no longer considered SARSEP contributions. Such notification shall specify the amount of the disallowed Elective Deferrals and the Participant's calendar year in which they are includible in income. Additionally, the notice must provide an explanation of the applicable penalties if the disallowed Elective Deferrals are not withdrawn in a timely fashion. The notice to each affected Participant shall state the following: (a) The amount of the disallowed Elective Deferral; (b) That the disallowed Elective Deferrals are includible in the Participant's gross income for the calendar year or years in which the amounts deferred would have been received by the Participant in cash had she or he not made the election to defer, and that the income allocable to such disallowed Elective Deferrals is includible in the Participant's gross income in the year withdrawn from the SEP-IRA; xxdand
Appears in 1 contract
Samples: Sep and Sarsep Ira Adoption Agreement (Aim Growth Series)
