SAFE HARBOR ALLOCATION Sample Clauses
SAFE HARBOR ALLOCATION. A QNEC Contribution cannot be taken into account under the Actual Contribution Percentage (ACP) test for a Plan Year for a NHCE to the extent such contributions exceed the product of that NHCE’s Code Section 414(s) compensation and the greater of five percent (5%) or two (2) times the Plan’s “representative contribution rate.” Any QNEC Contribution taken into account under an Actual Deferral Percentage (ADP) test under Regulation 1.401(k)-2(a)(6) (including the determination of the “representative contribution rate” for purposes of Regulation 1.401(k)-2(a)(b)(iv)(B)) is not permitted to be taken into account for purposes of this Section. For purposes of this Subsection:
(1) The Plan’s “representative contribution rate” is the lowest “applicable contribution rate” of any eligible NHCE among a group of eligible NHCEs that consists of half of all eligible NHCEs for the Plan Year (or, if greater, the lowest “applicable contribution rate” of any eligible NHCE who is in the group of all eligible NHCEs for the Plan Year and who is employed by the Employer on the last day of the Plan Year), and
(2) The “applicable contribution rate” for an eligible NHCE is the sum of the matching contributions (as defined in Regulation Section 1.401(m)-1(a)(2)) taken into account in determining the applicable contribution rate for the eligible NHCE for the Plan Year and the QNEC made for that NHCE for the Plan Year, divided by that NHCE’s Code Section 414(s) compensation for the Plan Year. Notwithstanding the above, QNEC Contributions that are made in connection with the Employer’s obligation to pay prevailing wages under the ▇▇▇▇▇-▇▇▇▇▇ Act (46 Stat. 1494), Public Law 71-798, Service Contract Act of 1965 (79 Stat. 1965), Public Law 89-286, or similar legislation can be taken into account for a Plan Year for an NHCE to the extent such contributions do not exceed 10 percent (10%) of that NHCE’s Code Section 414(s) compensation. QNECs cannot be taken into account to determine an ADP to the extent such contributions are taken into account for purposes of satisfying any other ADP test, any ACP test, or the requirements of Regulation Section 1.401(k)-3, 1.401(m)-3, or 1.401(k)-4. Notwithstanding any provision of the Plan to the contrary, Qualified Matching Contributions shall not be permitted.
SAFE HARBOR ALLOCATION. Notwithstanding anything to the contrary in the Adoption Agreement, in the event the requirements of Code Sections 401(a)(26) or 410(b) are not met during the Plan Year, Employer Contributions will be allocated to Eligible Employees in the following order until the applicable requirements are met:
(A) Eligible Employees employed by the Employer on the last day of the Plan Year and who have completed more than 750 Hours of Service during the Plan Year;
(B) Eligible Employees employed by the Employer on the last day of the Plan Year and who have completed more than 500 but less than 750 Hours of Service during the Plan Year;
(C) Eligible Employees employed by the Employer on the last day of the Plan Year and who have completed 500 or fewer Hours of Service during the Plan Year;
(D) Eligible Employees who have completed 750 or more Hours of Service during the Plan Year;
(E) Eligible Employees who have completed more than 500 but less than 750 Hours of Service during the Plan Year. In no event will Employees who have terminated employment with the Employer during the Plan Year and who have completed 500 or fewer Hours of Service during the Plan Year receive any allocation of Employer Profit Sharing Contributions.
SAFE HARBOR ALLOCATION. Notwithstanding anything to the contrary in the Adoption Agreement, in the event the requirements of Code Sections 401(a)(26) or 410(b) are not met during the Plan Year, Employer Contributions will be allocated to Eligible Employees in the following order until the applicable requirements are met: