Common use of Special Rules Relating To The Application Of The ACP Test Clause in Contracts

Special Rules Relating To The Application Of The ACP Test. A Participant is a Highly Compensated Employee for a particular Plan Year if he or she meets the definition of a Highly Compensated Employee in effect for that Plan Year. Similarly, a Participant is a Non-Highly Compensated Employee for a particular Plan Year if he or she does not meet the definition of a Highly Compensated Employee in effect for that Plan Year. For Plan Years beginning before 2002, if one or more Highly Compensated Employees participated in both a cash or deferred arrangement and a plan subject to the ACP Test maintained by the Employer and the sum of the ADP and ACP of those Highly Compensated Employees subject to either or both tests exceeded the Aggregate Limit, then the ADP or ACP of those Highly Compensated Employees who also participated in a cash or deferred arrangement may have been reduced in accordance with paragraph 11.7 so that the limit was not exceeded. The amount by which each Highly Compensated Employee’s Contribution Percentage Amounts was reduced was treated as an Excess Aggregate Contribution. The ADP and ACP of the Highly Compensated Employees was determined after any corrections required to meet the ADP and ACP Tests and were deemed to be the maximum permitted under such tests for the Plan Year. Multiple use of the Aggregate Limit did not occur if either the ADP or ACP of the Highly Compensated employees did not exceed 1.25 multiplied by the ADP and ACP of the Non-Highly Compensated Employees. The restrictions on multiple use of the Aggregate Limit do not apply for Plan Years beginning after 2001. For purposes of this paragraph, the ACP for any Participant who is a Highly Compensated Employee and who is eligible to have Contribution Percentage Amounts allocated to his or her account under two (2) or more plans described in Code Section 401(a) or arrangements described in Code Section 401(k) that are maintained by the Employer, shall be determined as if the total of such Contribution Percentage Amounts were made under a single plan or arrangement. If a Highly Compensated Employee participates in two (2) or more such plans or arrangements that have different Plan Years, all such plans and arrangements shall be aggregated. For Plan Years beginning before 2006, all such plans and arrangements ending with or within the same calendar year shall be treated as a single arrangement. Notwithstanding the foregoing, certain plans shall be treated as separate if their disaggregation is mandatory under the Regulations issued under Code Section 401(m).

Special Rules Relating To The Application Of The ACP Test. A Participant is a Highly Compensated Employee for a particular Plan Year if he or she meets the definition of a Highly Compensated Employee in effect for that Plan Year. Similarly, a Participant is a Non-Highly Compensated Employee for a particular Plan Year if he or she does not meet the definition of a Highly Compensated Employee in effect for that Plan Year. For Plan Years beginning before 2002, if If one or more Highly Compensated Employees participated participate in both a cash or deferred arrangement and a plan subject to the ACP Test maintained by the Employer and the sum of the ADP and ACP of those Highly Compensated Employees subject to either or both tests exceeded exceeds the Aggregate Limit, then the ADP or ACP of those Highly Compensated Employees who also participated participate in a cash or deferred arrangement may have been will be reduced in accordance with paragraph 11.7 11.4 so that the limit was is not exceeded. The amount by which each Highly Compensated Employee’s Contribution Percentage Amounts was is reduced was shall be treated as an Excess Aggregate Contribution. The ADP and ACP of the Highly Compensated Employees was are determined after any corrections required to meet the ADP and ACP Tests tests and were are deemed to be the maximum permitted under such tests for the Plan Year. Multiple use of the Aggregate Limit did aggregate limit does not occur if either the ADP or and ACP of the Highly Compensated employees did Employees does not exceed 1.25 multiplied by the ADP and ACP of the Non-Highly Compensated Employees. The restrictions on multiple use of the Aggregate Limit do not apply for Plan Years beginning after 2001. For purposes of this paragraph, the ACP Actual Contribution Percentage for any Participant who is a Highly Compensated Employee and who is eligible to have Contribution Percentage Amounts allocated to his or her account under two (2) or more plans described in Code Section 401(a) or arrangements described in Code Section 401(k) that are maintained by the Employer, shall be determined as if the total of such Contribution Percentage Amounts were made under a single plan or arrangementplan. If a Highly Compensated Employee participates in two (2) or more such plans cash or deferred arrangements that have different Plan Years, all such plans and arrangements shall be aggregated. For Plan Years beginning before 2006, all such plans and cash or deferred arrangements ending with or within the same calendar year shall be treated as a single arrangement. Notwithstanding the foregoing, certain plans shall be treated as separate if their mandatory disaggregation is mandatory under the Regulations issued under Code Section 410(b) apply. In the event that this Plan satisfies the requirements of Code Sections 401(a)(4), 401(m), or 410(b) only if aggregated with one (1) or more other plans, or if one (1) or more other plans satisfy the requirements of such Code Sections only if aggregated with this Plan, then this section shall be applied by determining the Actual Contribution Percentage of Eligible Participants as if all such plans were a single plan. Any adjustments to the Non-Highly Compensated Employee ACP for the Prior Plan Year will be made in accordance with IRS Notice 98-1 and any superseding guidance, unless the Employer has elected in the Adoption Agreement to use the Current Year testing method. Plans may be aggregated in order to satisfy Code Section 401(m) only if the aggregated plans have the same Plan Year and use the same ACP testing method. For purposes of the ACP Test, Employee contributions are considered to have been made for the Plan Year in which contributed to the Plan. Matching Contributions and Qualified Matching and Non-Elective Contributions will be considered made for a Plan Year if made no later than the end of the twelve (12) month period beginning on the day after the close of the Plan Year. The determination and treatment of the Actual Contribution Percentage of any Participant shall satisfy such other requirements as may be prescribed by the Secretary of the Treasury.

Special Rules Relating To The Application Of The ACP Test. A Participant is a Highly Compensated Employee for a particular Plan Year if he or she meets the definition of a Highly Compensated Employee in effect for that Plan Year. Similarly, a Participant is a Non-Highly Compensated Employee for a particular Plan Year if he or she does not meet the definition of a Highly Compensated Employee in effect for that Plan Year. For Plan Years beginning before 2002, if If one or more Highly Compensated Employees participated participate in both a cash or deferred arrangement and a plan subject to the ACP Test maintained by the Employer and the sum of the ADP and ACP of those Highly Compensated Employees subject to either or both tests exceeded exceeds the Aggregate Limit, then the ADP or ACP of those Highly Compensated Employees who also participated participate in a cash or deferred arrangement may have been will be reduced in accordance with paragraph 11.7 11.4 so that the limit was is not exceeded. The amount by which each Highly Compensated Employee’s 's Contribution Percentage Amounts was is reduced was shall be treated as an Excess Aggregate Contribution. The ADP and ACP of the Highly Compensated Employees was are determined after any corrections required to meet the ADP and ACP Tests tests and were are deemed to be the maximum permitted under such tests for the Plan Year. Multiple use of the Aggregate Limit did aggregate limit does not occur if either the ADP or and ACP of the Highly Compensated employees did Employees does not exceed 1.25 multiplied by the ADP and ACP of the Non-Highly Compensated Employees. The restrictions on multiple use of the Aggregate Limit do not apply for Plan Years beginning after 2001. For purposes of this paragraph, the ACP Actual Contribution Percentage for any Participant who is a Highly Compensated Employee and who is eligible to have Contribution Percentage Amounts allocated to his or her account under two (2) or more plans described in Code Section 401(a) or arrangements described in Code Section 401(k) that are maintained by the Employer, shall be determined as if the total of such Contribution Percentage Amounts were made under a single plan or arrangementplan. If a Highly Compensated Employee participates in two (2) or more such plans cash or deferred arrangements that have different Plan Years, all such plans and arrangements shall be aggregated. For Plan Years beginning before 2006, all such plans and cash or deferred arrangements ending with or within the same calendar year shall be treated as a single arrangement. Notwithstanding the foregoing, certain plans shall be treated as separate if their mandatory disaggregation is mandatory under the Regulations issued under Code Section 410(b) apply. In the event that this Plan satisfies the requirements of Code Sections 401(a)(4), 401(m), or 410(b) only if aggregated with one (1) or more other plans, or if one (1) or more other plans satisfy the requirements of such Code Sections only if aggregated with this Plan, then this section shall be applied by determining the Actual Contribution Percentage of Eligible Participants as if all such plans were a single plan. Any adjustments to the Non-Highly Compensated Employee ACP for the Prior Plan Year will be made in accordance with IRS Notice 98-1 and any superseding guidance, unless the Employer has elected in the Adoption Agreement to use the Current Year testing method. Plans may be aggregated in order to satisfy Code Section 401(m) only if the aggregated plans have the same Plan Year and use the same ACP testing method. For purposes of the ACP Test, Employee contributions are considered to have been made for the Plan Year in which contributed to the Plan. Matching Contributions and Qualified Matching and Non-Elective Contributions will be considered made for a Plan Year if made no later than the end of the twelve (12) month period beginning on the day after the close of the Plan Year. The determination and treatment of the Actual Contribution Percentage of any Participant shall satisfy such other requirements as may be prescribed by the Secretary of the Treasury.