Common use of Special Rule for Early Participation Clause in Contracts

Special Rule for Early Participation. If this 401(m) Plan provides that Otherwise Excludable Participants are eligible to participate and if the Plan applies Code §410(b)(4)(B) in determining whether the 401(m) Plan meets the requirements of Code §410(b)(1), then in determining whether the 401(m) Plan satisfies the ACP Test, the Sponsoring Employer may, in the Sponsoring Employer’s discretion (but is not required to), either:

Special Rule for Early Participation. If this 401(m401(k) Plan provides that Otherwise Excludable Participants are eligible to participate and if the Plan applies Code §410(b)(4)(B) in determining whether the 401(m401(k) Plan meets the requirements of Code §410(b)(1), then in determining whether the 401(m401(k) Plan satisfies the ACP ADP Test, the Sponsoring Employer may, in the Sponsoring Employer’s discretion (but is not required to), either: