Common use of Principles regarding corrective allocations and corrective distributions Clause in Contracts

Principles regarding corrective allocations and corrective distributions. The following principles apply where an appropriate correction method includes the use of corrective allocations or corrective distributions: (a) Corrective allocations under a defined contribution plan should be based upon the terms of the plan and other applicable information at the time of the failure (including the compensation that would have been used under the plan for the period with respect to which a corrective allocation is being made) and should be adjusted for earnings (including losses) and forfeitures that would have been allocated to the participant's account if the failure had not occurred. The corrective allocation need not be adjusted for losses. See section 3 of Appendix B for additional information on calculation of earnings for corrective allocations. (b) A corrective allocation to a participant's account because of a failure to make a required allocation in a prior limitation year will not be considered an annual addition with respect to the participant for the limitation year in which the correction is made, but will be considered an annual addition for the limitation year to which the corrective allocation relates. However, the normal rules of § 404, regarding deductions, apply. (c) Corrective allocations should come only from employer contributions (including forfeitures if the plan permits their use to reduce employer contributions). (d) In the case of a defined benefit plan, a corrective distribution for an individual should be increased to take into account the delayed payment, consistent with the plan's actuarial adjustments.

Principles regarding corrective allocations and corrective distributions. The following principles apply where an appropriate correction method includes the use of corrective allocations or corrective distributions: (a) Corrective allocations under a defined contribution plan should be based upon the terms of the plan and other applicable information at the time of the failure (including the compensation that would have been used under the plan for the period with respect to which a corrective allocation is being made) and should be adjusted for earnings (including losses) and forfeitures that would have been allocated to the participant's account if the failure had not occurred. The However, a corrective allocation need is not required to be adjusted for losses. See section 3 of Appendix B for additional information on calculation of earnings for corrective allocations. (b) A corrective allocation to a participant's account because of a failure to make a required allocation in a prior limitation year will is not be considered an annual addition with respect to the participant for the limitation year in which the correction is made, but will be is considered an annual addition for the limitation year to which the corrective allocation relates. However, the normal rules of § 404, regarding deductions, apply. (c) Corrective allocations should come only from employer nonelective contributions (including forfeitures if the plan permits their use to reduce employer contributions). (d) In the case of a defined benefit plan, a corrective distribution for an individual should be increased to take into account the delayed payment, consistent with the plan's actuarial adjustments. (e) In the case of a defined contribution plan, a corrective contribution or distribution should be adjusted for earnings (including losses) from the date of the failure (determined without regard to any Code provision which permits a corrective contribution or distribution to be made at a later date).

Principles regarding corrective allocations and corrective distributions. The following principles apply where an appropriate correction method includes the use of corrective allocations or corrective distributions: (a) Corrective allocations under a defined contribution plan should be based upon the terms of the plan and other applicable information at the time of the failure (including the compensation that would have been used under the plan for the period with respect to which a corrective allocation is being made) and should be adjusted for earnings (including losses) and forfeitures that would have been allocated to the participant's account if the failure had not occurred. The corrective allocation need not be adjusted for losses. See section 3 of Appendix B for additional information on calculation of earnings for corrective allocations. (b) A corrective allocation to a participant's account because of a failure to make a required allocation in a prior limitation year will not be considered an annual addition with respect to the participant for the limitation year in which the correction is made, but will be considered an annual addition for the limitation year to which the corrective allocation relates. However, the normal rules of § □ 404, regarding deductions, apply. (c) Corrective allocations should come only from employer contributions (including forfeitures if the plan permits their use to reduce employer contributions). (d) In the case of a defined benefit plan, a corrective distribution for an individual should be increased to take into account the delayed payment, consistent with the plan's actuarial adjustments.

Principles regarding corrective allocations and corrective distributions. The following principles apply where an appropriate correction method includes the use of corrective allocations or corrective distributions:. Corrective allocations are generally not made with respect to a 403(b) Plan. (a) Corrective allocations under a defined contribution plan should be based upon the terms of the plan and other applicable information at the time of the failure Qualification Failure (including the compensation that would have been used under the plan for the period with respect to which a corrective allocation is being made) and should be adjusted for earnings (including losses) and forfeitures that would have been allocated to the participant's account if the failure had not occurred. The corrective allocation need not be adjusted for losses. See section 3 For administrative convenience, in the case of Appendix B for additional information on calculation of earnings for corrective allocations, if the plan permitted directed investments for the years at issue, and thus had more than one fund, the plan would be permitted to use the highest rate earned in the plan for the period of the failure as the rate used for all corrective allocations, provided that most of the employees receiving the corrective allocations are nonhighly compensated employees. (b) A corrective allocation to a participant's account because of a failure to make a required allocation in a prior limitation year will not be considered an annual addition with respect to the participant for the limitation year in which the correction is made, but will be considered an annual addition for the limitation year to which the corrective allocation relates. However, the normal rules of § 404, regarding deductions, apply. (c) Corrective allocations should come only from employer contributions (including forfeitures if the plan permits their use to reduce employer contributions). (d) In the case of a defined benefit plan, a corrective distribution for an individual should be increased to take into account the delayed payment, consistent with the plan's actuarial adjustments.

Principles regarding corrective allocations and corrective distributions. The following principles apply where an appropriate correction method includes the use of corrective allocations or corrective distributions: (a) Corrective allocations under a defined contribution plan should be based upon the terms of the plan and other applicable information at the time of the failure (including the compensation that would have been used under the plan for the period with respect to which a corrective allocation is being made) and should be adjusted for earnings (including losses) and forfeitures that would have been allocated to the participant's account if the failure had not occurred. The However, the corrective allocation need not be adjusted for losses. See section 3 of Appendix B for additional information on calculation of earnings for corrective allocations. (b) A corrective allocation to a participant's account because of a failure to make a required allocation in a prior limitation year will not be considered an annual addition with respect to the participant for the limitation year in which the correction is made, but will be considered an annual addition for the limitation year to which the corrective allocation relates. However, the normal rules of § 404, regarding deductions, apply. (c) Corrective allocations should come only from employer contributions (including forfeitures if the plan permits their use to reduce employer contributions). (d) In the case of a defined benefit plan, a corrective distribution for an individual should be increased to take into account the delayed payment, consistent with the plan's actuarial adjustments.

Principles regarding corrective allocations and corrective distributions. The following principles apply where an appropriate correction method includes the use of corrective allocations or corrective correc- tive distributions: (a) Corrective allocations under a defined contribution plan should be based upon the terms of the plan and other applicable information at the time of the failure (including the compensation that would have been used under the plan for the period with respect to which a corrective correc- tive allocation is being made) and should be adjusted for earnings (including losses) and forfeitures that would have been allocated to the participant's ’s account if the failure had not occurred. The corrective cor- rective allocation need not be adjusted for losses. See section 3 of Appendix B for additional information on calculation of earnings for corrective allocations. (b) A corrective allocation to a participant's ’s account because of a failure to make a required allocation in a prior limitation year will not be considered an annual addition with respect to the participant par- ticipant for the limitation year in which the correction is made, but will be considered consid- ered an annual addition for the limitation year to which the corrective allocation relates. However, the normal rules of § 404, regarding deductions, apply. (c) Corrective allocations should come only from employer contributions (including forfeitures if the plan permits their use to reduce employer contributionscontribu- tions). (d) In the case of a defined benefit plan, a corrective distribution for an individual indi- vidual should be increased to take into account the delayed payment, consistent with the plan's ’s actuarial adjustments.

Principles regarding corrective allocations and corrective distributions. The following principles apply where an appropriate correction method includes the use of corrective allocations or corrective distributions: (a) Corrective allocations under a defined contribution plan should be based upon the terms of the plan and other applicable information at the time of the failure (including the compensation that would have been used under the plan for the period with respect to which a corrective allocation is being made) and should be adjusted for earnings (including losses) and forfeitures that would have been allocated to the participant's account if the failure had not occurred. The corrective allocation need not be adjusted for losses. See section 3 of Appendix B for additional information on calculation of earnings for corrective allocations. (b) A corrective allocation to a participant's account because of a failure to make a required allocation in a prior limitation year will not be considered an annual addition with respect to the participant for the limitation year in which the correction is made, but will be considered an annual addition for the limitation year to which the corrective allocation relates. However, the normal rules of §  404, regarding deductions, apply. (c) Corrective allocations should come only from employer contributions (including forfeitures if the plan permits their use to reduce employer contributions). (d) In the case of a defined benefit plan, a corrective distribution for an individual should be increased to take into account the delayed payment, consistent with the plan's actuarial adjustments.

Principles regarding corrective allocations and corrective distributions. The following principles apply where an appropriate correction method includes the use of corrective allocations or corrective correc- tive distributions:. Corrective allocations are generally not made with respect to a 403(b) Plan. (a) Corrective allocations under a defined contribution plan should be based upon the terms of the plan and other applicable ap- plicable information at the time of the failure Qualification Failure (including the compensation com- pensation that would have been used under the plan for the period with respect to which a corrective allocation is being made) and should be adjusted for earnings (including losses) and forfeitures that would have been allocated allo- cated to the participant's ’s account if the failure had not occurred. The corrective allocation need not be adjusted for losses. See section 3 For administrative convenience, in the case of Appendix B for additional information on calculation of earnings for corrective allocations, if the plan permitted directed investments for the years at issue, and thus had more than one fund, the plan would be permitted to use the highest rate earned in the plan for the period of the failure as the rate used for all corrective allocations, provided that most of the employees receiving the corrective allocations are nonhighly compensated employees. (b) A corrective allocation to a participant's ’s account because of a failure to make a required allocation in a prior limitation year will not be considered an annual addition with respect to the participant partici- pant for the limitation year in which the correction is made, but will be considered an annual addition for the limitation year to which the corrective allocation relates. However, the normal rules of § 404, regarding re- xxxxxxx deductions, apply. (c) Corrective allocations should come only from employer contributions (including forfeitures if the plan permits their use to reduce employer contributionscontribu- tions). (d) In the case of a defined benefit plan, a corrective distribution for an individual indi- vidual should be increased to take into account ac- count the delayed payment, consistent with the plan's ’s actuarial adjustments.