Common use of Prior Year Testing Clause in Contracts

Prior Year Testing. If elected by the Employer in the Adoption Agreement, the ACP for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior Plan Year’s ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year must satisfy one of the following tests: (1) The ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year multiplied by 1.25; or (2) The ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year multiplied by 2.0, provided that the ACP for eligible Participants who are Highly Compensated Employees does not exceed the ACP for eligible Participants who were Non-Highly Compensated Employees in the Prior Plan Year by more than two (2) percentage points. For the first Plan Year of a Plan where this Plan permits any eligible Participant to make Employee contributions, provides for Matching Contributions, or both, and the Plan is not a successor Plan, for purposes of the foregoing limits, the Prior Plan Year’s Non-Highly Compensated Employees’ ACP shall be 3% unless the Employer has elected in the Adoption Agreement to use the current Plan Year’s ACP for these Participants.

Appears in 8 contracts

Samples: Defined Contribution Plan, Defined Contribution Plan (Wellesley Bancorp, Inc.), Defined Contribution Plan (Savannah Bancorp Inc)

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Prior Year Testing. If elected by the Employer in the Adoption Agreement, the ACP The Average Contribution Percentage ("ACP") for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior Plan Year’s prior year's ACP for eligible Participants participants who were Non-Highly highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests: (1a) The ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s prior year's ACP for eligible Participants who were Non-Highly highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2b) The ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s prior year's ACP for eligible Participants who were Non-Highly highly Compensated Employees for the Prior prior Plan Year multiplied by 2.02, provided that the ACP for eligible Participants who are Highly Compensated Employees does not exceed the ACP for eligible Participants who were Non-Highly highly Compensated Employees in the Prior prior Plan Year by more than two (2) 2 percentage points. For the first Plan Year of a Plan where this Plan permits any eligible Participant to make Employee contributionsContributions, provides for Matching Contributions, Contributions or both, and the Plan this is not a successor Planplan, for purposes of the foregoing limitstests, the Prior Plan Year’s prior year's Non-Highly highly Compensated Employees' ACP shall be 3% 3 percent unless the Employer has elected in the Adoption Agreement to use the current Plan Year’s 's ACP for these Participants. Unless elected by the Employer in the Adoption Agreement pursuant to 15.11(b) above, prior year testing shall apply.

Appears in 3 contracts

Samples: Individual 401(k) Plan Purchase Agreement, Employer Sponsored Plan Account Agreement, Employer Sponsored Plan Account Agreement

Prior Year Testing. If elected by the Employer in the Adoption Agreement, the ACP The Actual Deferral Percentage (hereinafter "ADP") for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior Plan Yearprior year’s ACP ADP for eligible Participants who were Non-Highly Non- highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests: (1a) The ACP ADP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP year's ADP for eligible Participants who were Non-Highly highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2b) The ACP ADP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP 's ADP for eligible Participants who were Non-Highly highly Compensated Employees for the Prior Plan Year multiplied by 2.0, provided that the ACP ADP for eligible Participants who are Highly Compensated Employees does not exceed the ACP ADP for eligible Participants who were Non-Highly highly Compensated Employees in the Prior prior Plan Year by more than two (2) 2 percentage points. For the first Plan Year of a Plan where this the Plan permits any eligible Participant to make Employee contributions, provides for Matching Contributions, or both, Elective deferrals and the Plan this is not a successor Planplan, for purposes of the The foregoing limitstests, the Prior Plan Year’s Non-Highly Compensated prior year's non- highly compensated Employees’ ACP ' ADP shall be 3% 3 percent unless the Employer has elected in the Adoption Agreement to use the current Plan Year’s ACP 's ADP for these Participants. Unless elected by the Employer in the Adoption Agreement pursuant to 15.04(b) above, prior year testing shall apply.

Appears in 3 contracts

Samples: Individual 401(k) Plan Purchase Agreement, Employer Sponsored Plan Account Agreement, Employer Sponsored Plan Account Agreement

Prior Year Testing. If elected by the Employer in the Adoption Agreement, the ACP ADP for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior Plan Year’s ACP ADP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year must satisfy one of the following tests:basic limit set forth in (1) or the alternative limit set forth at (2): (1) The ACP ADP for the Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ADP for Participants who were Non-Highly Compensated Employees for the Prior Plan Year multiplied by 1.25; or (2) The ADP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP ADP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year multiplied by 1.25; or (2) The ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year multiplied by 2.0, provided that the ACP ADP for eligible Participants who are Highly Compensated Employees does not exceed the ACP ADP for eligible Participants who were Non-Highly Compensated Employees in the Prior Plan Year by more than two (2) percentage points. For the first Plan Year of a Plan where this the Plan permits any eligible a Participant to make Employee contributions, provides for Matching Contributions, Elective Deferrals or both, Xxxx Elective Deferrals and the Plan is not a successor Plan, for purposes of the foregoing limits, the Prior Plan Year’s Non-Highly Compensated Employees’ ACP ADP shall be 3% %, unless the Employer has elected in the Adoption Agreement to use the current Plan Year’s ACP ADP for these Participants.

Appears in 3 contracts

Samples: Defined Contribution Plan (Wellesley Bancorp, Inc.), Defined Contribution Plan (Old Dominion Freight Line Inc/Va), Defined Contribution Plan (Athens Bancshares Corp)

Prior Year Testing. If elected by the Employer in the Adoption AgreementNotwithstanding any other provision of this 401(k) Feature, the ACP actual deferral percentage for a Plan Year for eligible Participants Members who are Highly Compensated Employees for each such Plan Year and the Prior Plan Year’s ACP prior year=s actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests: (1a) The ACP the actual deferral percentage for a Plan Year for Participants Members who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP for eligible Participants prior year=s actual deferral percentage of those Members who were Non-are not Highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2b) The ACP the actual deferral percentage for a Plan Year for Participants Members who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP prior year=s actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees for the Prior prior Plan Year multiplied by 2.0, provided that the ACP actual deferral percentage for eligible Participants Members who are Highly Compensated Employees does not exceed the ACP prior year’s actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees in the Prior prior Plan Year by more than two (2) percentage points. This determination shall be made in accordance with the procedure described in Section 3.11 below. For the first Plan Year of a Plan where this that the Plan permits any eligible Participant Member to make Employee contributions, provides for Matching Contributions, or both, elective deferrals and the Plan this is not a successor Planplan, for purposes of the foregoing limitstests, the Prior Plan Year’s prior year=s Non-Highly Compensated Employees’ ACP Employees= actual deferral percentage shall be three percent (3% %) unless the Employer has elected in the Adoption Agreement to use the current Plan Year’s ACP =s actual deferral percentage for these ParticipantsMembers. The Employer may elect in the Adoption Agreement to change from the Prior Year Testing method to the Current Year Testing method in accordance with the Code and IRS Regulations.

Appears in 2 contracts

Samples: Adoption Agreement (Sugar Creek Financial Corp./Md/), Adoption Agreement (Cape Bancorp, Inc.)

Prior Year Testing. If elected by the Employer in the Adoption AgreementNotwithstanding any other provision of this 401(k) Feature, the ACP actual deferral percentage for a Plan Year for eligible Participants Members who are Highly Compensated Employees for each such Plan Year and the Prior Plan Yearprior year’s ACP actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests: (1a) The ACP the actual deferral percentage for a Plan Year for Participants Members who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Yearprior year’s ACP for eligible Participants actual deferral percentage of those Members who were Non-are not Highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2b) The ACP the actual deferral percentage for a Plan Year for Participants Members who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Yearprior year’s ACP actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees for the Prior prior Plan Year multiplied by 2.0, provided that the ACP actual deferral percentage for eligible Participants Members who are Highly Compensated Employees does not exceed the ACP prior year’s actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees in the Prior prior Plan Year by more than two (2) 2 percentage points. This determination shall be made in accordance with the procedure described in Section 3.10 below. For the first Plan Year of a Plan where this that the Plan permits any eligible Participant Member to make Employee contributions, provides for Matching Contributions, or both, elective deferrals and the Plan this is not a successor Planplan, for purposes of the foregoing limitstests, the Prior Plan Yearprior year’s Non-Highly Compensated Employees’ ACP actual deferral percentage shall be 3% 3 percent unless the Employer has elected in the Adoption Agreement to use the current Plan Year’s ACP actual deferral percentage for these ParticipantsMembers. The Employer may elect in the Adoption Agreement to change from the Prior Year Testing method to the Current Year Testing method in accordance with the Code and IRS Regulations.

Appears in 2 contracts

Samples: Adoption Agreement (Sugar Creek Financial Corp), Adoption Agreement (Northeast Community Bancorp Inc)

Prior Year Testing. If elected by the Employer in the Adoption AgreementNotwithstanding any other provision of this 401(k) Feature, the ACP actual deferral percentage for a Plan Year for eligible Participants Members who are Highly Compensated Employees for each such Plan Year and the Prior Plan Yearprior year’s ACP actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests: (1a) The ACP the actual deferral percentage for a Plan Year for Participants Members who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Yearprior year’s ACP for eligible Participants actual deferral percentage of those Members who were Non-are not Highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2b) The ACP the actual deferral percentage for a Plan Year for Participants Members who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Yearprior year’s ACP actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees for the Prior prior Plan Year multiplied by 2.0, provided that the ACP actual deferral percentage for eligible Participants Members who are Highly Compensated Employees does not exceed the ACP prior year’s actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees in the Prior prior Plan Year by more than two (2) percentage points. This determination shall be made in accordance with the procedure described in Section 3.11 below. For the first Plan Year of a Plan where this that the Plan permits any eligible Participant Member to make Employee contributions, provides for Matching Contributions, or both, elective deferrals and the Plan this is not a successor Planplan, for purposes of the foregoing limitstests, the Prior Plan Yearprior year’s Non-Highly Compensated Employees’ ACP actual deferral percentage shall be three percent (3% %) unless the Employer has elected in the Adoption Agreement to use the current Plan Year’s ACP actual deferral percentage for these ParticipantsMembers. The Employer may elect in the Adoption Agreement to change from the Prior Year Testing method to the Current Year Testing method in accordance with the Code and IRS Regulations.

Appears in 1 contract

Samples: Adoption Agreement (First Savings Financial Group Inc)

Prior Year Testing. If elected by the Employer in the Adoption AgreementNotwithstanding any other provision of this 401(k) Feature, the ACP actual deferral percentage for a Plan Year for eligible Participants Members who are Highly Compensated Employees for each such Plan Year and the Prior Plan Year’s ACP prior year's actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests: (1a) The ACP the actual deferral percentage for a Plan Year for Participants Members who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP for eligible Participants prior year's actual deferral percentage of those Members who were Non-are not Highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2b) The ACP the actual deferral percentage for a Plan Year for Participants Members who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP prior year's actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees for the Prior prior Plan Year multiplied by 2.0, provided that the ACP actual deferral percentage for eligible Participants Members who are Highly Compensated Employees does not exceed the ACP actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees in the Prior prior Plan Year by more than two (2) 2 percentage points. This determination shall be made in accordance with the procedure described in Section 3.10 below. For the first Plan Year of a Plan where this that the Plan permits any eligible Participant Member to make Employee contributions, provides for Matching Contributions, or both, elective deferrals and the Plan this is not a successor Planplan, for purposes of the foregoing limitstests, the Prior Plan Year’s prior year's Non-Highly Compensated Employees’ ACP ' actual deferral percentage shall be 3% 3 percent unless the Employer has elected in the Adoption Agreement to use the current Plan Year’s ACP 's actual deferral percentage for these ParticipantsMembers. The Employer may elect in the Adoption Agreement to change from the Prior Year Testing method to the Current Year Testing method in accordance with the Code and IRS Regulations.

Appears in 1 contract

Samples: Employees' Savings & Profit Sharing Plan and Trust (Pulaski Financial Corp)

Prior Year Testing. If elected by the Employer Except as provided in the Adoption AgreementSection 3.14 (Safe Harbor Method CODA), the ACP ADP for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior prior Plan Year’s ACP ADP for eligible Participants who were Non-Highly highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests: (1a) The ACP ADP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior prior Plan Year’s ACP ADP for eligible Participants who were Non-Highly highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2b) The ACP ADP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior prior Plan Year’s ACP ADP for eligible Participants who were Non-Highly highly Compensated Employees for the Prior prior Plan Year multiplied by 2.0, provided that the ACP ADP for eligible Participants who are Highly Compensated Employees does not exceed the ACP for eligible Participants who were Non-Highly highly Compensated Employees in the Prior prior Plan Year does not exceed the ADP for Participants who were Non-highly Compensated Employees in the prior Plan Year by more than two (2) 2.0 percentage points. For the first Plan Year of a Plan where this that the Plan permits any eligible Participant to make Employee contributions, provides for Matching Elective Deferral Contributions, or both, and the Plan if this is not a successor Planplan, then for purposes of the foregoing limitstests, the Prior prior Plan Year’s Non-Highly highly Compensated Employees’ ACP ADP shall be 3% unless either 3 percent or, the Employer has elected Plan Year’s ADP for these Participants, as selected in the Adoption Agreement to use the current Plan Year’s ACP for these ParticipantsAgreement.

Appears in 1 contract

Samples: Defined Contribution Plan and Trust (Triad Guaranty Inc)

Prior Year Testing. If elected by the Employer in the Adoption Agreement, the ACP The Actual Deferral Percentage (hereinafter "ADP") for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior Plan Year’s ACP prior year's ADP for eligible Participants who were Non-Highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests: (1i) The ACP ADP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP prior year's ADP for eligible Participants who were Non-Highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2ii) The ACP ADP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP prior year's ADP for eligible Participants who were Non-Highly Compensated Employees for the Prior prior Plan Year multiplied by 2.0, provided that the ACP ADP for eligible Participants who are were Highly Compensated Employees for the Plan Year does not exceed the ACP ADP for eligible Participants who were Non-Highly Compensated Employees in the Prior prior Plan Year by more than two (2) percentage points. For the first Plan Year of a Plan where this the Plan permits any eligible Participant to make Employee contributions, provides for Matching Contributions, or both, Elective Deferrals and the Plan this is not a successor Planplan, for purposes of the foregoing limitstests, the Prior Plan Year’s prior year's ADP of Non-Highly Compensated Employees’ ACP Employees shall be 3% 3 percent unless the Employer has elected in the Adoption Agreement to use the Plan Year's ADP for these Participants. Current Year Testing. If elected by the Employer in the Adoption Agreement, the ADP tests in (i) and (ii), above, will be applied by comparing the current Plan Years ADP for Participants who are Highly Compensated Employees with the current Plan Year’s ACP 's ADP for these ParticipantsParticipants who are Non-Highly Compensated Employees. Once made, this election can be undone only if the Plan meets the requirements for changing to Prior Year Testing set forth in Notice 98-1 (or superseding guidance). For Plan Years beginning before the Employer adopts this document for its GUST-restated plan, the ADP Test in any such Plan Year will be performed using Prior Year Testing or Current Year Testing as the Employer elects in the Optional Supplement.

Appears in 1 contract

Samples: 401(k) Adoption Agreement (Garmin LTD)

Prior Year Testing. If elected by the Employer in the Adoption Agreement, the ACP The ADP for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior Plan Yearprior year’s ACP ADP for eligible Participants who were Nonnon-Highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests:. (1) a. The ACP ADP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Yearprior year’s ACP ADP for eligible Participants who were Nonnon-Highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2) b. The ACP ADP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Yearprior year’s ACP ADP for eligible Participants who were Nonnon-Highly Compensated Employees for the Prior prior Plan Year multiplied by 2.0, provided that the ACP ADP for eligible Participants who are Highly Compensated Employees does not exceed the ACP ADP for eligible Participants who were Nonnon-Highly Compensated Employees in the Prior prior Plan Year by more than two (2) percentage points. For the first Plan Year of a Plan where this the Plan permits any eligible Participant to make Employee contributions, provides for Matching Contributions, or both, Elective Deferrals and the Plan this is not a successor Plan, for purposes of the foregoing limitstests, the Prior Plan Yearprior year’s Nonnon-Highly Compensated Employees’ ACP ADP shall be 3% three percent unless the Adopting Employer has elected in the Adoption Agreement to use the current actual Plan Year’s ACP ADP for these Participants. Notwithstanding the foregoing, if the Adopting Employer has elected the Safe Harbor CODA option in the Adoption Agreement, the current year testing provisions described in Plan Section 3.13(A)(4) will apply.

Appears in 1 contract

Samples: Comprehensive 401(k) Profit Sharing Plan Nonstandardized Adoption Agreement (Kimball Electronics, Inc.)

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Prior Year Testing. If elected by the Employer in the Adoption Agreement, the The ACP for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior Plan Yearprior year’s ACP for eligible Participants who were Nonnon-Highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests:. (1) a. The ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Yearprior year’s ACP for eligible Participants who were Nonnon-Highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2) b. The ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Yearprior year’s ACP for eligible Participants who were Nonnon-Highly Compensated Employees for the Prior prior Plan Year multiplied by 2.0, provided that the ACP for eligible Participants who are Highly Compensated Employees does not exceed the ACP for eligible Participants who were Nonnon-Highly Compensated Employees in the Prior prior Plan Year by more than two (2) percentage points. For the first Plan Year of a Plan where Year, if this Plan permits any eligible Participant to make Nondeductible Employee contributionsContributions, provides for Matching Contributions, Contributions or both, and the Plan this is not a successor Plan, for purposes of the foregoing limitstests, the Prior Plan Yearprior year’s Nonnon-Highly Compensated Employees’ ACP shall be 3% three percent unless the Employer has elected in the Adoption Agreement to use the current Plan Year’s ACP for these Participants. Notwithstanding the foregoing, if the Adopting Employer has elected the Safe Harbor CODA option in the Adoption Agreement, the current year testing provisions described below will apply.

Appears in 1 contract

Samples: Comprehensive 401(k) Profit Sharing Plan Nonstandardized Adoption Agreement (Kimball Electronics, Inc.)

Prior Year Testing. If elected by the Employer in the Adoption AgreementNotwithstanding any other provision of this 401(k) Feature, the ACP actual deferral percentage for a Plan Year for eligible Participants Members who are Highly Compensated Employees for each such Plan Year and the Prior Plan Yearprior year’s ACP actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests: (1a) The ACP the actual deferral percentage for a Plan Year for Participants Members who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Yearprior year’s ACP for eligible Participants actual deferral percentage of those Members who were Non-are not Highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2b) The ACP the actual deferral percentage for a Plan Year for Participants Members who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Yearprior year’s ACP actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees for the Prior prior Plan Year multiplied by 2.0, provided that the ACP actual deferral percentage for eligible Participants Members who are Highly Compensated Employees does not exceed the ACP actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees in the Prior prior Plan Year by more than two (2) 2 percentage points. This determination shall be made in accordance with the procedure described in Section 3.10 below. For the first Plan Year of a Plan where this that the Plan permits any eligible Participant Member to make Employee contributions, provides for Matching Contributions, or both, elective deferrals and the Plan this is not a successor Planplan, for purposes of the foregoing limitstests, the Prior Plan Yearprior year’s Non-Highly Compensated Employees’ ACP actual deferral percentage shall be 3% 3 percent unless the Employer has elected in the Adoption Agreement to use the current Plan Year’s ACP actual deferral percentage for these ParticipantsMembers. The Employer may elect in the Adoption Agreement to change from the Prior Year Testing method to the Current Year Testing method in accordance with the Code and IRS Regulations.

Appears in 1 contract

Samples: Adoption Agreement (Ottawa Savings Bancorp, Inc.)

Prior Year Testing. If elected by the Employer in the Adoption Agreement, the ACP for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior prior Plan Year’s 's ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year must satisfy one of the following tests: (1) The ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior prior Plan Year’s 's ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year multiplied by 1.25; or (2) The ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s prior year's ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year multiplied by 2.0, provided that the ACP for eligible Participants who are Highly Compensated Employees does not exceed the ACP for eligible Participants who were Non-Highly Compensated Employees in the Prior Plan Year by more than two (2) percentage points. For the first Plan Year of a Plan where this Plan permits any eligible Participant to make Employee contributions, provides for Matching Contributions, or both, and the Plan is not a successor Plan, for purposes of the foregoing limits, the Prior Plan Year’s Non-Highly Compensated Employees’ ACP shall be 3% unless the Employer has elected in the Adoption Agreement to use the current Plan Year’s ACP for these Participants.

Appears in 1 contract

Samples: Nonstandardized Adoption Agreement (Banctrust Financial Group Inc)

Prior Year Testing. If elected by the Employer in the Adoption Agreement, the ACP The ADP for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior Plan Year’s ACP prior year's ADP for eligible Participants who were Nonnon-Highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests:. (1) a. The ACP ADP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP prior year's ADP for eligible Participants who were Nonnon-Highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2) b. The ACP ADP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s ACP prior year's ADP for eligible Participants who were Nonnon-Highly Compensated Employees for the Prior prior Plan Year multiplied by 2.0, provided that the ACP ADP for eligible Participants who are Highly Compensated Employees does not exceed the ACP ADP for eligible Participants who were Nonnon-Highly Compensated Employees in the Prior prior Plan Year by more than two (2) percentage points. For the first Plan Year of a Plan where this the Plan permits any eligible Participant to make Employee contributions, provides for Matching Contributions, or both, Elective Deferrals and the Plan this is not a successor Plan, for purposes of the foregoing limitstests, the Prior Plan Year’s Nonprior year's non-Highly Compensated Employees’ ACP ' ADP shall be 3% three percent unless the Adopting Employer has elected in the Adoption Agreement to use the current actual Plan Year’s ACP 's ADP for these Participants.

Appears in 1 contract

Samples: Retirement Plan Document (Merchants & Manufacturers Bancorporation Inc)

Prior Year Testing. If elected by the Employer in the Adoption Agreement, the ACP The Average Contribution Percentage (hereinafter "ACP") for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior Plan Year’s prior year's ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests: (1i) The ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s prior year's ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2ii) The ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Year’s prior year's ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior prior Plan Year multiplied by 2.0, provided that the ACP for eligible Participants who are Highly Compensated Employees does not exceed the ACP for eligible Participants who were Non-Highly Compensated Employees in the Prior prior Plan Year by more than two (2) percentage points. For the first Plan Year of a Plan where this the Plan permits any eligible Participant to make Employee contributionsAfter-Tax Contributions, provides for Matching Contributions, or both, and the Plan this is not a successor Planplan, for purposes of the foregoing limitstests, the Prior Plan Year’s prior year's ACP of Non-Highly Compensated Employees’ ACP Employees shall be 3% 3 percent unless the Employer has elected in the Adoption Agreement to use the current Plan Year’s 's ACP for these Participants. Current Year Testing. If elected by the Employer in the Adoption Agreement, the ACP tests in (i) and (ii), above, will be applied by comparing the current Plan Year's ACP for Participants who are Highly Compensated Employees for each Plan Year with the current Plan Year's ACP for Participants who are Non-Highly Compensated Employees. Once made, this election can be undone only if the Plan meets the requirements for changing to Prior Year Testing set forth in Notice 98-1 (or superseding guidance). For Plan Years beginning before the Employer adopts this document for its GUST-restated plan, the ACP Test in any such Plan Year will be performed using Prior Year Testing or Current Year Testing as the Employer elects in the Optional Supplement.

Appears in 1 contract

Samples: 401(k) Adoption Agreement (Garmin LTD)

Prior Year Testing. If elected by the Employer in the Adoption AgreementNotwithstanding any other provision of this 401(k) Feature, the ACP actual deferral percentage for a Plan Year for eligible Participants Members who are Highly Compensated Employees for each such Plan Year and the Prior Plan Yearprior year’s ACP actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests: (1a) The ACP the actual deferral percentage for a Plan Year for Participants Members who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Yearprior year’s ACP for eligible Participants actual deferral percentage of those Members who were Non-are not Highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2b) The ACP the actual deferral percentage for a Plan Year for Participants Members who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Plan Yearprior year’s ACP actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees for the Prior prior Plan Year multiplied by 2.0, provided that the ACP actual deferral percentage for eligible Participants Members who are Highly Compensated Employees does not exceed the ACP prior year’s actual deferral percentage for eligible Participants Members who were Non-Highly Compensated Employees in the Prior prior Plan Year by more than two (2) 2 percentage points. This determination shall be made in accordance with the procedure described in Section 3.10 below. For the first Plan Year of a Plan where this that the Plan permits any eligible Participant Member to make Employee contributions, provides for Matching Contributions, or both, elective deferrals and the Plan this is not a successor Planplan, for purposes of the foregoing limitstests, the Prior Plan Yearprior year’s Non-Highly Compensated Employees’ ACP actual deferral percentage shall be 3% 3 percent unless the Employer has elected in the Adoption Agreement to use the current Plan Yearyear’s ACP actual deferral percentage for these ParticipantsMembers. The Employer may elect in the Adoption Agreement to change from the Prior Year Testing method to the Current Year Testing method in accordance with the Code and IRS Regulations.

Appears in 1 contract

Samples: Adoption Agreement (Newport Bancorp Inc)

Prior Year Testing. If elected by the Employer Except as provided in the Adoption AgreementSection 3.14 (Safe Harbor Method CODA), the ACP for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior prior Plan Year’s ACP for eligible Participants who were Non-Highly highly Compensated Employees for the Prior prior Plan Year must satisfy one of the following tests: (1a) The the ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior prior Plan Year’s ACP for eligible Participants who were Non-Highly highly Compensated Employees for the Prior prior Plan Year multiplied by 1.25; or (2b) The the ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior prior Plan Year’s ACP for eligible Participants who were are Non-Highly highly Compensated Employees for the Prior prior Plan Year multiplied by 2.0, provided that the ACP for eligible Participants who are Highly were Non-highly Compensated Employees in the prior Plan Year does not exceed the ACP for eligible Participants who were Non-Highly highly Compensated Employees Participants in the Prior prior Plan Year by more than two (2) percentage points. For the first Plan Year of a Plan where this that the Plan permits any eligible Participant to make Employee contributionsAfter-Tax Contributions, provides for Matching Contributions, Contributions or both, and the Plan if this is not a successor Planplan, then for purposes of the foregoing limitstests, the Prior prior Plan Year’s Non-Highly highly Compensated Employees’ ACP shall be 3% unless either 3 percent or, the Employer has elected in the Adoption Agreement to use the current Plan Year’s ACP for these ParticipantsParticipants as elected in the Adoption Agreement.

Appears in 1 contract

Samples: Defined Contribution Plan and Trust (Triad Guaranty Inc)

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