Common use of Spillover Method Clause in Contracts

Spillover Method. (1) Any Elective Deferrals and nondeductible Employee Voluntary Contributions, to the extent they would reduce the Excess Amount, will be returned to the Participant. (2) Any Excess Amount which would be allocated to the account of an individual Participant under the Plan's allocation formula will be reallocated to other Participants in the same manner as other Employer contributions. No such reallocation shall be made to the extent that it will result in an Excess Amount being created in such Participant's own account. (3) To the extent that amounts cannot be reallocated under (1) above, the suspense account provisions of (a) above will apply.