Safe Harbor Rules Sample Clauses
The Safe Harbor Rules clause establishes specific conditions under which a party is protected from liability or penalties, provided they act in good faith and comply with outlined requirements. Typically, this clause applies to situations involving regulatory compliance, data privacy, or reporting obligations, where adherence to prescribed procedures shields the party from adverse consequences. Its core practical function is to encourage compliance by offering assurance that minor or unintentional errors will not result in punitive action, thereby reducing risk and promoting transparency.
Safe Harbor Rules. (a) This Section shall apply to a Participant in a Profit-Sharing Plan, and to any distribution, made on or after the first day of the first Plan Year beginning after December 31, 1988, from or under a separate account attributable solely to accumulated deductible employee contributions, as defined in section 72(o)(5)(B) of the Code, and maintained on behalf of a Participant in a money purchase pension plan (including a target benefit plan), if the following conditions are satisfied: (1) the Participant does not or cannot elect payments in the form of a life annuity; and (2) on the death of a Participant, the Participant's vested account balance will be paid to the Participant's surviving spouse, but if there is no surviving spouse, or if the surviving spouse has consented in a manner conforming to a qualified election, then to the Participant's Designated Beneficiary. The surviving spouse may elect to have distribution of the vested account balance commence within the 90-day period following the date of the Participant's death. The account balance shall be adjusted for gains or losses occurring after the Participant's death in accordance with the provisions of the Plan governing the adjustment of account balances for other types of distributions. If the plan provides for a separate accounting of the participant’s benefits, these requirements need only apply to the separate account This Section 9.06 shall not be operative with respect to a Participant in a Profit-Sharing Plan if the Plan is a direct or indirect transferee of a defined benefit plan, money purchase plan, target benefit plan, stock bonus, or profit-sharing plan which is subject to the survivor annuity requirements of sections 401(a)(11) and 417 of the Code. If this Section 9.06 is operative, then the provisions of this Article, other than Section 9.06, shall be inoperative.
(b) The Participant may waive the spousal death benefit described in this Section at any time provided that no such waiver shall be effective unless it satisfies the conditions of Section 14.50 of the Plan (other than the notification requirement referred to therein) that would apply to the Participant's waiver of the Qualified Preretirement Survivor Annuity.
(c) For purposes of this Section 9.06, "vested account balance" shall mean, in the case of a money purchase pension plan or a target benefit plan, the Participant's separate account balance attributable solely to accumulated deductible employee contributions within th...
Safe Harbor Rules. The ManagementCo Shareholder is authorized and directed to elect to have the “Safe Harbor” described in the proposed Revenue Procedure set forth in Internal Revenue Service Notice 2005-43 (the “Notice”) apply to any interest in the Company transferred to a service provider by the Company on or after the effective date of such Revenue Procedure in connection with services provided to the Company. Under the Safe Harbor, the value of an interest that is transferred in connection with the performance of services (a “Safe Harbor Interest”) is treated as being equal to the liquidation value of that interest. For purposes of making such Safe Harbor election, the ManagementCo Shareholder is designated as the “partner who has responsibility for federal income tax reporting” by the ManagementCo Shareholder and, accordingly, execution of such Safe Harbor election by the ManagementCo Shareholder constitutes execution of a “Safe Harbor Election” in accordance with Section 3.03(1) of the Notice. The Company and each Shareholder agree to comply with all requirements of the Safe Harbor described in the Notice, including, without limitation, the requirement that each Shareholder prepare and file all federal income tax returns (to the extent it is required to file such returns) reporting the income tax effects of each Safe Harbor Interest issued by the Company in a manner consistent with the requirements of the Notice. Each Shareholder’s obligations to comply with the requirements of this Section 12.14 shall survive the Shareholder’s ceasing to be a Shareholder of the Company and/or the winding up and/or termination of the Company, and for purposes of this Section 12.14, the Company shall be treated as continuing in existence. The ManagementCo Shareholder is authorized to amend the provisions in this Agreement to the extent necessary to achieve substantially the same tax treatment with respect to any interest in the Company transferred to a service provider by the Company in connection with services provided to the Company as set forth in Section 4 of the Notice (e.g., to reflect changes from the rules set forth in the Notice in subsequent Internal Revenue Service guidance), provided that such amendment is not adverse to any Shareholder (as compared with the after-tax consequences that would result if the provisions of the Notice applied to all interests in the Company transferred to a service provider by the Company in connection with services provided to the Company).
Safe Harbor Rules. This section shall apply to a participant in a profit-sharing plan and 401(k) plan, and to any distribution, made on or after the first day of the first plan year beginning after December 31, 1988, from or under a separate account attributable solely to accumulated deductible employee contributions, as defined in section 72(o)(5)(B) of the Code, and maintained on behalf of a participant in a money purchase pension plan, (including a target benefit plan) if the following conditions are satisfied:
Safe Harbor Rules. Except to the extent otherwise elected by the Employer in the Adoption Agreement or as provided in Section 4.7.6, the requirements of this Section 4.7 shall not apply to a participant in a profit-sharing plan, and to any distribution made on or after the first day of the first plan year beginning after December 31, 1988 from the participant's deductible contribution account under a money purchase pension plan, if the following conditions are met:
(a) The participant cannot or does not elect payments in the form of a life annuity.
(b) Upon the death of the participant, the participant's vested accrued benefit will be paid to the participant's surviving spouse, or, if the surviving spouse has already consented in a manner conforming to a qualified election, then to the participant's designated beneficiary. The surviving spouse may elect to have distribution of the vested accrued benefit commence within the 90-day period following the date of the participant's death. The accrued benefit shall be adjusted for gains and losses occur- ring after the participant's death in accordance with Section 4.10.
(c) The profit-sharing plan with respect to the participant is not determined to be the direct or indirect transferee of a defined benefit plan, money purchase pension plan (including a target benefit plan), stock bonus or profit-sharing plan which is subject to the survivor annuity requirements of Sections 401(a) and 417 of the Code. For purposes of this Section 4.7.5, "vested accrued benefit" shall refer, in the case of a money purchase plan, only to the balance in the participant's deductible contribution account.
Safe Harbor Rules. This Section shall apply to a Participant in a plan designated as either a Cash or Deferred Arrangement or Profit Sharing Plan notwithstanding any other provision of the plan if the following conditions are satisfied:
(1) the Participant does not or cannot elect payments in the form of a life annuity; and
(2) on the death of a Participant, the Participant's vested Account balance will be paid to the Participant's surviving spouse, but if there is no surviving spouse, or if the surviving spouse has consented in a manner conforming to a qualified election, then to the Participant's Designated Beneficiary. The surviving spouse may elect to have distribution of the vested Account balance commence with the 90-day period following the date of the Participant's death. The Account balance shall be adjusted for gains or losses occurring after the Participant's death in accordance with the provisions of the Plan governing the adjustment of Account balances for other types of distributions. This Section (m) shall not be operative with respect to a Participant in a plan designated as a Profit Sharing Plan or Cash of Deferred Arrangement if the Plan is a direct or indirect transferee of a defined benefit plan, money purchase plan, a target benefit plan, stock bonus, or profit sharing plan which is subject to the survivor annuity requirements of section 401(a)(11) and section 417 of the Code.
Safe Harbor Rules. If this Plan is a Safe Harbor Plan, as that term is defined in Section 1.2.79, the requirement that a spouse consent to the Participant taking his distribution in a form other than a Qualified Joint and Survivor Annuity shall not apply notwithstanding any other provision of the Plan. This Section (e) shall not be operative with respect to the portion of a Participant's Segregated Account attributable to a direct or indirect transfer from a defined benefit plan, money purchase plan, target benefit plan, stock bonus, or profit sharing plan which is subject to the survivor annuity requirements of section 401(a)(11) and section 417 of the Code.
Safe Harbor Rules. Upon finalization of Proposed Treasury Regulation 1.83-3(1) and IRS Notice 2005-43, or any successor thereof (the “Safe Harbor Rules”), each Partner hereby agrees to comply with all requirements of a “Safe Harbor Election”, as such term is defined in the Safe Harbor Rules applicable to such Partner. The General Partner is hereby authorized to amend this Agreement, without the consent of the Limited Partners, as necessary to comply with the applicable requirements of the Safe Harbor Rules.
Safe Harbor Rules