Participant Group Allocation Method Sample Clauses
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Participant Group Allocation Method. If the Employer has elected the Participant Group Allocation method in the Adoption Agreement, then for purposes of determining the amount of Employer Contributions to be allocated to Employees’ accounts, each eligible Employee of the Employer will be included in a Participant Allocation Group as defined in the Adoption Agreement . The Employer will specify in written instructions to the Plan Administrator or the Trustee, by no later than the due date of the Employer’s tax return for the year to which the Employer’s Contribution relates, the portion of such contribution to be allocated to each separate Participant Allocation Group.
Participant Group Allocation Method. If the Employer has elected the Participant Group Allocation method in the Adoption Agreement, each eligible Participant of the Employer will constitute a “separate allocation group” for purposes of allocating contributions. Only a limited number of allocation rates are permitted, and the number of allocation rates cannot be greater than the maximum allowable number of allocation rates. The maximum allowable number of allocation rates is equal to the sum of the allowable number of allocation rates for eligible Non-Highly Compensated Employees (eligible NHCEs) and the allowable number of allocation rates for eligible Highly Compensated Employees (eligible HCEs). The allowable number of allocation rates for eligible HCEs is equal to the number of eligible HCEs, limited to twenty-five (25). The allowable number of eligible NHCEs is equal to the number of eligible HCEs, limited to twenty-five (25). The allowable number of NHCE allocation rates depends on the number of eligible NHCEs, limited to twenty-five (25). The allocation will be made as follows:
(1) First, the total amount of contributions is allocated among the deemed aggregated allocation groups in portions determined by the Employer. A deemed aggregated allocation group consists of all of the separate allocation groups that have the same allocation rate. Second, within each deemed aggregated allocation group, the allocated portion is allocated to each Participant in the ratio that such Participant’s Compensation as defined in paragraph 1.17, bears to the total Compensation of all Participants in the group. An allocation rate is the amount of contributions allocated to a Participant for a Plan Year expressed as a percentage of Compensation, as defined in paragraph 1.17. The number of eligible NHCEs to which a particular allocation rate applies must reflect a reasonable classification of Participants, and no Participant can be assigned to more than one (1) deemed aggregated allocation group for a Plan Year.
(2) For Plans with only one (1) or two (2) eligible NHCEs, the allowable number of NHCE allocation rates is one (1). For Plans with three (3) to eight (8) eligible NHCEs, the allowable number of NHCE allocation rates cannot exceed two (2). For Plans with nine (9) to eleven (11) eligible NHCEs, the allowable number of NHCE allocation rates cannot exceed three (3). For Plans with twelve (12) to nineteen (19) eligible NHCEs, the allowable number of NHCE allocation rates cannot exceed four (4). For Plans...
Participant Group Allocation Method. The allocation rate shall be specified by an appropriate written action of the Employer on or before the due date of the Employer’s tax return for the year in which the contribution is allocated. The allocation rates specified must provide that Non-Highly Compensated Employees’ allocations satisfy the gateway contribution test.
Participant Group Allocation Method. II: Each HCE will be in a separate allocation group and NHCEs will be divided into the following groups (one or more) with the same allocation ratio (specify groups by category of Participant):
Participant Group Allocation Method. The Nonelective Employer Contribution is allocated first at the Employer's discretion among the employee groups with the same allocation rate, as identified below. The amount allocated to each such group shall then be allocated among the "eligible" Participants within such group in the ratio that each "eligible" Participant's Compensation for the Plan Year bears to the total Compensation paid to all "eligible" Participants within the group.
(A) Employee Groups – Allocation groups will be determined in the following manner:
(1) On or before the due date of the Employer’s tax return for the year of allocation, the Employer will submit written instructions to the Plan Administrator dividing “eligible” Participants into allocation groups to be utilized for that year’s allocation.
Participant Group Allocation Method. If the Employer has elected the Participant Group Allocation method in the Adoption Agreement, each eligible Participant of the Employer will constitute a “separate allocation group” for purposes of allocating contributions. Only a limited number of allocation rates are permitted, and the number of allocation rates cannot be greater than the maximum allowable number of allocation rates. The maximum allowable number of allocation rates is equal to the sum of the allowable number of allocation rates for eligible Non-Highly Compensated Employees (eligible NHCEs) and the allowable number of allocation rates for eligible Highly Compensated Employees (eligible HCEs). The allowable number of allocation rates for eligible HCEs is equal to the number of eligible HCEs, limited to twenty-five (25). The allowable number of allocation rates for eligible NHCEs depends on the number of eligible NHCEs, limited to twenty-five (25). The allocation will be made as follows: