Common use of Prior Year Testing Clause in Contracts

Prior Year Testing. If elected by the Employer in the Adoption Agreement, the ADP for a Plan Year for Participants who are Highly Compensated Employees for each Plan Year and the Prior Plan Year’s ADP for Participants who were Non-Highly Compensated Employees for the Prior Plan Year must satisfy the basic limit set forth in (1) or the alternative limit set forth at (2): (1) The 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 Year’s ADP for Participants who were Non-Highly Compensated Employees for the Prior Plan Year multiplied by 2.0, provided that the ADP for Participants who are Highly Compensated Employees does not exceed the ADP for Participants who were Non-Highly Compensated Employees in the Prior Plan Year by more than two (2) percentage points.

Prior Year Testing. If elected by the Employer in the Adoption Agreement, the ADP ACP for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior prior Plan Year’s ADP ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year must satisfy one of the basic limit set forth in (1) or the alternative limit set forth at (2):following tests: . (1) The 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 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 ADP 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 year’s ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year multiplied by 2.0, provided that the ADP ACP for eligible Participants who are Highly Compensated Employees does not exceed the ADP ACP for eligible Participants who were Non-Highly Compensated Employees in the Prior Plan Year by more than two (2) percentage points. .

Prior Year Testing. If elected by the Employer in the Adoption Agreement, the ADP ACP for a Plan Year for eligible Participants who are Highly Compensated Employees for each Plan Year and the Prior prior Plan Year’s ADP ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year must satisfy one of the basic limit set forth in (1) or the alternative limit set forth at (2):following tests: (1) The ADP ACP for the a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior prior Plan Year’s ADP ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year multiplied by 1.25; or (2) The ADP ACP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Yearprior year’s ADP ACP for eligible Participants who were Non-Highly Compensated Employees for the Prior Plan Year multiplied by 2.0, provided that the ADP ACP for eligible Participants who are Highly Compensated Employees does not exceed the ADP ACP for eligible Participants who were Non-Highly Compensated Employees in the Prior Plan Year by more than two (2) percentage points.

Prior Year Testing. If elected by the Employer in the Adoption Agreement, the ADP for a Plan Year for Participants who are Highly Compensated Employees for each Plan Year and the Prior Plan Year’s ADP for Participants who were Non-Highly Compensated Employees for the Prior Plan Year must satisfy the basic limit set forth in (1) or the alternative limit set forth at (2):): . (1) The 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; oror . (2) The ADP for a Plan Year for Participants who are Highly Compensated Employees for the Plan Year shall not exceed the Prior Year’s ADP for Participants who were Non-Highly Compensated Employees for the Prior Plan Year multiplied by 2.0, provided that the ADP for Participants who are Highly Compensated Employees does not exceed the ADP for Participants who were Non-Highly Compensated Employees in the Prior Plan Year by more than two (2) percentage points.