Common use of Targeted QNEC Limit Clause in Contracts

Targeted QNEC Limit. Qualified nonelective contributions (as defined in Treasury Regulation section 1.401(k)-6) cannot be taken into account under the actual contribution percentage test for a Plan Year for an 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 qualified nonelective contribution taken into account under an actual deferral percentage test under Treasury Regulation section 1.401(k)-2(a)(6) (including the determination of the “representative contribution rate” for purposes of Treasury Regulation section 1.401(k)-2(a)(6)(iv)(B)) is not permitted to be taken into account for purposes of this Section D.6(b) (including the determination of the “representative contribution rate” for purposes of subsection (i) below). For purposes of this Section D.6(b): (i) 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 (ii) The “applicable contribution rate” for an eligible NHCE is the sum of the matching contributions (as defined in Treasury Regulation section 1.401(m)-1(a)(2)) taken into account in determining the ACR for the eligible NHCE for the Plan Year and the qualified nonelective contributions 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, qualified nonelective contributions that are made in connection with an Employer’s obligation to pay prevailing wages under the Dxxxx-Xxxxx 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.

Targeted QNEC Limit. Qualified nonelective contributions Nonelective Contributions (as defined in Treasury Regulation section Section 1.401(k)-6) cannot be taken into account under the actual contribution percentage Actual Contribution Percentage (ACP) test for a Plan Year for an NHCE to the extent such contributions exceed the product of that NHCE’s Code section Section 414(s) compensation and the greater of five percent (5%) or two (2) times the Plan’s “representative contribution rate.” Any qualified nonelective contribution Qualified Nonelective Contribution taken into account under an actual deferral percentage Actual Deferral Percentage (ADP) test under Treasury Regulation section Section 1.401(k)-2(a)(6) (including the determination of the “representative contribution rate” for purposes of Treasury Regulation section Section 1.401(k)-2(a)(6)(iv)(B)) is not permitted to be taken into account for purposes of this Section D.6(b) (including the determination of the “representative contribution rate” for purposes of subsection (ia) below). For purposes of this Section D.6(b):Section: (ia) 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 (iib) The “applicable contribution rate” for an eligible NHCE is the sum of the matching contributions (as defined in Treasury Regulation section Section 1.401(m)-1(a)(2)) taken into account in determining the ACR for the eligible NHCE for the Plan Year and the qualified nonelective contributions Qualified Nonelective Contributions made for that NHCE for the Plan Year, divided by that NHCE’s Code section Section 414(s) compensation for the Plan Year. Notwithstanding the above, qualified nonelective contributions Qualified Nonelective Contributions that are made in connection with an Employer’s obligation to pay prevailing wages under the Dxxxx-Xxxxx 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 Section 414(s) compensation.

Targeted QNEC Limit. Qualified nonelective contributions Nonelective Contributions (as defined in Treasury Regulation section 1.401(k)-6Section 1.40l(k)-6) cannot be taken into account under the actual contribution percentage Actual Contribution Percentage (ACP) test for a Plan Year for an NHCE to the extent such contributions exceed the product of that NHCE’s Code section Section 414(s) compensation and the greater of five percent (5%) or two (2) times the Plan’s “representative contribution rate.” Any qualified nonelective contribution Qualified Nonelective Contribution taken into account under an actual deferral percentage Actual Deferral Percentage (ADP) test under Treasury Regulation section Section 1.401(k)-2(a)(6) (including the determination of the “representative contribution rate” for purposes of Treasury Regulation section 1.401(k)-2(a)(6)(iv)(BSection l.401(k)-2(a)(6)(iv)(B)) is not permitted to be taken into account for purposes of this Section D.6(b) (including the determination of the “representative contribution rate” for purposes of subsection (ia) below). For purposes of this Section D.6(b):Section: (ia) The Plan’s “representative contribution rate” is the lowest “applicable contribution rate” of any eligible NHCE among a group of eligible NHCEs NHCE 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 (iib) The “applicable contribution rate” for an eligible NHCE is the sum of the matching contributions (as defined in Treasury Regulation section Section 1.401(m)-1(a)(2)) taken into account in determining the ACR for the eligible NHCE for the Plan Year and the qualified nonelective contributions Qualified Nonelective Contributions made for that NHCE for the Plan Year, divided by that NHCE’s Code section Section 414(s) compensation for the Plan Year. Notwithstanding the above, qualified nonelective contributions Qualified Nonelective Contributions that are made in connection with an Employer’s obligation to pay prevailing wages under the DxxxxXxxxx-Xxxxx 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 Section 414(s) compensation.

Targeted QNEC Limit. Qualified nonelective contributions (as defined in Treasury Regulation section 1.401(k)-6) cannot be taken into account under the actual contribution percentage test for a Plan Year for an 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 qualified nonelective contribution taken into account under an actual deferral percentage test under Treasury Regulation section 1.401(k)-2(a)(6) (including the determination of the “representative contribution rate” for purposes of Treasury Regulation section 1.401(k)-2(a)(6)(iv)(B)) is not permitted to be taken into account for purposes of this Section D.6(bE.1.6(b) (including the determination of the “representative contribution rate” for purposes of subsection (i) below). For purposes of this Section D.6(bE.1.6(b): (i) 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 (ii) The “applicable contribution rate” for an eligible NHCE is the sum of the matching contributions (as defined in Treasury Regulation section 1.401(m)-1(a)(2)) taken into account in determining the ACR for the eligible NHCE for the Plan Year and the qualified nonelective contributions 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, qualified nonelective contributions that are made in connection with an Employer’s obligation to pay prevailing wages under the Dxxxx-Xxxxx 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.

Targeted QNEC Limit. Qualified nonelective contributions (as defined in Treasury Regulation section 1.401(k)-6) cannot be taken into account under the actual contribution percentage test for a Plan Year for an 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 qualified nonelective contribution taken into account under an actual deferral percentage test under Treasury Regulation section 1.401(k)-2(a)(6) (including the determination of the “representative contribution rate” for purposes of Treasury Regulation section 1.401(k)-2(a)(6)(iv)(B)) is not permitted to be taken into account for purposes of this Section D.6(bD.1.6(b) (including the determination of the “representative contribution rate” for purposes of subsection (i) below). For purposes of this Section D.6(bD.1.6(b): (i) 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 (ii) The “applicable contribution rate” for an eligible NHCE is the sum of the matching contributions (as defined in Treasury Regulation section 1.401(m)-1(a)(2)) taken into account in determining the ACR for the eligible NHCE for the Plan Year and the qualified nonelective contributions 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, qualified nonelective contributions that are made in connection with an Employer’s obligation to pay prevailing wages under the Dxxxx-Xxxxx 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.