QMAC Contribution Formula Sample Clauses
The QMAC Contribution Formula clause defines the method for calculating Qualified Matching Contributions (QMACs) that an employer must make to a retirement plan. Typically, this clause outlines the percentage of employee compensation that will be matched by the employer and specifies the conditions under which these contributions are made, such as eligibility requirements or timing of contributions. Its core practical function is to ensure that employer contributions are determined in a consistent and transparent manner, thereby helping the plan comply with regulatory requirements and providing clarity to both employers and employees regarding benefit expectations.
QMAC Contribution Formula. The Employer may contribute to each eligible Participant’s Qualified Matching Contribution account an amount equal to (select one or more of the following):
o a. $ or % of the Participant’s Elective Deferrals (including ▇▇▇▇ Elective Deferrals, if applicable). o b. $ or % of the Participant’s Elective Deferrals (including ▇▇▇▇ Elective Deferrals, if applicable) not to exceed % of Compensation.
QMAC Contribution Formula. The Employer may contribute to each eligible Participant’s Qualified Matching Contribution account an amount equal to (select one or more of the following): [ ] a. $_________ or ______% of the Participant’s Elective Deferrals (including ▇▇▇▇ Elective Deferrals, if applicable). [ ] b. $_________ or ______% of the Participant’s Elective Deferrals (including ▇▇▇▇ Elective Deferrals, if applicable) not to exceed ______% of Compensation. [ ] c. $_________ or ______% of the Participant's Voluntary After-tax Contributions. [ ] d. $_________ or ______% of the Participant’s Required After-tax Contributions.