ADOPTION AGREEMENT FOR
THE GWYNEDD COMPANY
STANDARDIZED PROFIT-SHARING / 401(k) PLAN AND TRUST
PLAN NO 001
The undersigned Employer adopts The Gwynedd Company Standardized Profit-sharing
401(k) Plan for those Employees who shall qualify as Participants hereunder, to
be known as the:
Plan Name:
Plan Number: [_] 001 [X] 002 [_] 003 [_] _______
The plan shall be effective as of the date specified below. The Employer hereby
selects the following plan specifications:
EMPLOYER INFORMATION
Employer Name: Xxxxxxx Xxxx Bank
Address: 0000 Xxxxx 00
Xxxxxxxxx, XX 00000
Telephone: 000-000-0000
FAX: E-mail:
Employer Tax EIN: 23 - 0953930
Date Incorporated or Business Commenced:
Type of Entity:
[X] Corporation
[_] S Corporation
[_] Partnership
[_]
And, check below if the Employer is a Member of...
[_] a Controlled Group
[_] an Affiliated Service Group
Employer Fiscal Year means the 12 consecutive month period commencing on
July 1 (mo/day) and ending on June 30 (mo/day) .
Location of Employer's Principal Office:
[_] State of _____________________.
[X] Commonwealth of Pennsylvania and this Plan and Trust shall be
governed under the same.
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Controlled Corporations: N/A
TRUSTEE INFORMATION
Name of Trustee(s) (a) Xxxxxxx Xxxxxxxx
(b) Xxxxx Xxxxx
(c)
Trustees' Address [X] Use Employer Address
[_] _______________________________________________________________________
_____________________________________ __________ ________________
(City) (State) (ZIP)
Trustees' Tax EIN: N/A
AGENT FOR SERVICE OF LEGAL PROCESS
[X] Employer (use Employer address)
[_] _______________________________________________________________________
_____________________________________ __________ ________________
(City) (State) (ZIP)
DATES
This Adoption Agreement of The Gwynedd Company Standardized Profit-sharing
401(k) Plan and Trust shall:
[_] establish a new Plan and Trust effective as of __________________
(hereinafter called the "Effective Date").
[X] constitute an amendment and restatement in its entirety of a
previously established qualified Plan and Trust of the Employer
which was effective August 1, 1979 (hereinafter called the
"Effective Date"). Except as specifically provided in the Plan,
the effective date of this amendment and restatement is January
1, 2008.
NOTE: The provisions of the CODA (Cash Or Deferred Arrangement) may be
made effective as of the first day of the Plan Year in which the CODA
is adopted. However, under no circumstances may a salary reduction
agreement or other deferral mechanism be adopted retroactively.
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Article 1, Section 3
Hour of Service
Service will be determined on the basis of the method selected below. Only one
method may be selected. The method selected will be applied to all employees
covered under the plan.
[X] On the basis of actual hours for which an employee is paid or
entitled to payment.
[_] On the basis of days worked. An employee will be credited with ten
(10) hours of service if under section 3 of the plan such employee
would be credited with at least one (1) hour of service during the
day.
[_] On the basis of weeks worked. An employee will be credited with
forty-five (45) hours of service if under section 3 of the plan
such employee would be credited with at least one (1) hour of
service during the week.
[_] On the basis of semi-monthly payroll periods. An employee will be
credited with ninety-five (95) hours of service if under section 3
of the plan such employee would be credited with at least one (1)
hour of service during the semi-monthly payroll period.
[_] On the basis of months worked. An employee will be credited with
one hundred ninety (190) hours of service if under section 3 of
the plan such employee would be credited with at least one (1)
hour of service during the month.
Article 1, section 4
Plan Year
Plan Year will mean:
[_] the 12-consecutive month period which coincides with the limitation
year.
[X] the 12-consecutive month period commencing on July 1st and each
anniversary thereof.
Article 1, section 5
Compensation Periods
Compensation shall be determined over the following determination period:
[X] the plan year
[_] (a consecutive 12-month period ending with or within the plan
year.) Enter the day and the month this period begins: ____ (day)
____ (month). For employees whose date of hire is less than 12
months before the end of the 12-month period designated,
compensation will be determined over the plan year.
Compensation
[_] shall not include employer contributions made pursuant to a salary
reduction agreement which are not includible in the gross income
of the participant under sections 125, 132(f)(4), 402(e)(3),
402(h)(1)(B) or 403(b) of the Code.
[X] shall not include, for purposes of determining employer
contribution amounts, or for purposes of calculating Actual
Deferral Percentage and Average Contribution
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Percentage, that portion of the plan year during which the
employee was not an eligible employee.
Article 1, Section 7
Contributions on behalf of disabled participants
The employer___ will (check the line if the employer wants this option) __X_
will not (check the line if the employer does not want this option) make
contributions on behalf of disabled participants on the basis of the
compensation each such participant would have received for the limitation year
if the participant had been paid at the rate of compensation paid immediately
before becoming permanently and totally disabled.
Such imputed compensation for the disabled participant may be taken into account
only if the participant is not a highly compensated employee, and contributions
made on behalf of such participant will be nonforfeitable when made.
Compensation will mean compensation as that term is defined in Article 9,
section 5.2 of the plan.
Article 1, section 10
Highly Compensated Employee
[X] In determining who is a highly compensated employee the employer makes
a top-paid group election. The effect of this election is that an
employee (who is not a 5-percent owner at any time during the
determination year or the look-back year) with compensation in excess
of $80,000 (as adjusted) for the look-back year is a highly compensated
employee only if the employee was in the top-paid group for the
look-back year.
[_] In determining who is a highly compensated employee (other than as a
5-percent owner) the employer makes a calendar year data election. The
effect of this election is that the look-back year is the calendar year
beginning with or within the look-back year.
Article 1, section 13
Retirement Age
For each participant normal retirement age is:
[X] Age 65 (not to exceed 65)
[_] The later of:
(i) age ___ (not to exceed 65) or
(ii) the ___ (not to exceed 5th) anniversary of the participation
commencement date. The participation commencement date is the
first day of the first plan year in which the participant
commenced participation in the plan.
Early retirement age is: N/A
[_] The later of:
(i) age _____
(ii) the completion of years of service.
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Article 2, section 1
Administrative Committee
The Plan provides for the Employer to appoint an administrative committee. If
none is named, the Employer will be the Administrator.
Committee Members (a) N/A
(b)
(c)
Article 4, section 1
Eligibility
Each Employee will be eligible to participate in the Plan based upon the
satisfaction of the following requirements (check all that apply):
[X] For purposes of Elective Deferrals under the Plan, an Employee must be at
least age _21_ (maximum age 21) and have completed -0- Days (no more than
1 year) of service.
[X] For Matching and Qualified Matching Contributions under the Plan, an
Employee must be at least age _21_ (maximum age 21) and have completed 1
year (no more than 2 years) of service.
[X] For Qualified Non-Elective Contributions (i.e. Employer Profit Sharing
Contributions) under the Plan, an Employee must be at least age _ 21 _
(maximum age 21) and have completed 1 Year (no more than 2 years) of
service.
Note: If the service requirement indicated is or includes a fractional
year, an Employee will not be required to complete any specific number of
hours to receive credit for such fractional year.
The following Employees shall be excluded from eligibility to participate in the
Plan:
[X] Employees included in a unit of employees covered by a collective
bargaining agreement between the employer and employee representatives, if
retirement benefits were the subject of good faith bargaining and if two
percent or less of the employees who are covered pursuant to that agreement
are professionals as defined in section 1.410(b)-9(g) of the regulations.
For this purpose, the term "employee representatives" does not include any
organization more than half of whose members are employees who are owners,
officers, or executives of the employer.
[X] Employees who are nonresident aliens (within the meaning of section
7701(b)(1)(B)) and who receive no earned income (within the meaning of
section 911(d)(2)) from the employer which constitutes income from sources
within the United States (within the meaning of section 861(a)(3)).
[_] Employees who became employees as the result of a "section 410(b)(6)(C)
transaction". These employees will be excluded during the period beginning
on the date of the transaction and ending on the last day of the first plan
year beginning after the date of the transaction. A
Page 5
section 410(b)(6)(C) "transaction" is an asset or stock acquisition,
merger, or similar transaction involving a change in the employer of the
employees of a trade or business.
The Age and service requirements above apply to:
[X] All employees.
[_] Solely to an employee employed by the employer after ________________. If
the employee was employed by the specified date, the employee will become
eligible:
[_] On the effective date.
[_] On the earlier of the date the employee meets the eligibility requirements
of this plan and the date the employee would have met the eligibility
requirements in effect under the plan prior to the restated effective date
(for restated plans only).
An eligible employee shall become a participant as of:
[_] the first day of the plan year during which the employee met the conditions
of eligibility.
[_] the first day of the plan year during which the employee met the conditions
of eligibility, if the employee met the requirements during the first six
months of the plan year, or as of the first day of the next succeeding plan
year if the employee met the conditions of eligibility during the last six
months of the plan year.
[_] the earlier of the first day of the seventh month or the first day of the
plan year coinciding with or next following the date on which the employee
met the conditions of eligibility.
[_] the first day of the plan year next following the date on which the
employee meets the conditions of eligibility (eligibility must be 1/2 year
of service or less and age 20 1/2 or less).
[_] the first day of the plan quarter coinciding with or next following the
date on which the employee met the conditions of eligibility.
[X] the first day of the month coinciding with or next following the date on
which the employee met the conditions of eligibility.
Article 5, section 1
Profit Sharing
The employer (elect one):
[X] will make discretionary profit-sharing contributions to the plan.
[_] will not make discretionary profit-sharing contributions to the plan.
The profit-sharing contribution will be allocated among the participants:
[_] Each participant will receive ____ points for each: (must select at least
age or service)
[_] year of age
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[_] year of service
[$____] (not to exceed $200) of Compensation
Each participant's allocation shall bear the same relationship to the
employer contribution as his or her total points bears to all points
awarded.
[X] Each participant's allocation shall bear the same relationship to the
employer contribution as his or her compensation bears to the compensation
of all participants.
[_] Each participant's allocation shall be based on a permitted disparity
(Social Security integration formula.
The integration level is equal to:
[_] Taxable wage base
[_] $ ____________ (a dollar amount less than the taxable wage base)
[_] ________% of TWB (not to exceed 100%)
Article 6, General notice
The provisions of the CODA (Cash or deferred arrangement, code section 401(k))
may be made effective as of the first day of the Plan Year in which the CODA is
adopted, but under no circumstances may a salary reduction agreement or other
deferral mechanism be adopted retroactively.
Article 6, section 2
Elective deferrals
[X] Participants may elect to have contributed to the plan:
[X] Up to 50 percent of compensation.
NOTE: Participant contributions should not exceed 100% of compensation.
Article 6, section 3
Automatic enrollment (Negative election) N/A
[_] ______% of participant's compensation will be contributed to the trust as
an Elective Deferral unless the participant elects a contribution rate of
0% or another percentage.
Article 6, section 5
Excess elective deferrals
Participants who claim Excess Elective Deferrals for the preceding taxable year
must submit their claims in writing to the plan administrator by February 15
(specify a date before March 15).
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Article 6, section 6
ADP testing
Qualified Matching Contributions and Qualified Non-elective Contributions may be
taken into account as Elective Deferrals for purposes of calculating the Actual
Deferral Percentages. In determining Elective Deferrals for the purpose of the
ADP test, the employer shall include [ELECT, AS APPROPRIATE]:
[_] Qualified Matching Contributions
[X] Qualified Non-elective Contributions
under this plan or any other plan of the employer.
The amount of Qualified Matching Contributions made under Article 6, section 10
of the plan and taken into account as Elective Deferrals for purposes of
calculating the Actual Deferral Percentage shall be:
[X] All such Qualified Matching Contributions.
[_] Such Qualified Matching Contributions that are needed to meet the Actual
Deferral Percentage test stated in Article 6, section 6 of the plan. (This
box can only be checked if the employer has elected in the adoption
agreement to use the Current Year Testing method.)
The amount of Qualified Non-elective Contributions made under Article 6, section
13 of the plan and taken into account as Elective Deferrals for purposes of
calculating the Actual Deferral Percentages shall be:
[X] All such Qualified Non-elective Contributions.
[_] Such Qualified Non-elective Contributions that are needed to meet the
Actual Deferral Percentage test stated in Article 6, section 6 of the plan.
(This box can only be checked if the employer has elected in the adoption
agreement to use the Current Year Testing method.)
If this is not a successor plan, then, if checked [_], for the first Plan Year
this plan permits any participant to make Elective Deferrals, the ADP used in
the ADP test for participants who are Non-highly Compensated Employees shall be
such first Plan Year's ADP. (Do not check this box if the employer has elected
in the adoption agreement to use the Current Year Testing method.)
Article 6, section 8
Matching contributions
The employer will make Matching Contributions to the plan on behalf of [ELECT
ONE]:
[X] All participants
[_] All participants who are Non-highly Compensated Employees who make [ELECT
ONE OR BOTH]:
[_] Elective Deferrals
Page 8
[_] Employee Contributions to the plan.
The employer shall contribute and allocate to each participant's Matching
Contribution account an amount equal to:
[X] 25% of the participant's Elective Deferrals.
[_] ____% of the participant's Employee Contributions
[_] ____% of the participant's Elective Deferrals up to ____% of the
participant's compensation plus ____% (a lesser percentage) of the
participant's additional Elective Deferrals.
[_] ____% of the Elective Deferrals of participants with less than ____ (not
more than 2) years of service, and ____% of the Elective Deferrals of
participants with ____ (not more than 2) or more years of service.
The employer shall not match amounts provided above in excess of:
[_] $________
[X] 3% of the participant's compensation
[_] The employer may contribute a discretionary amount which shall be allocated
to each participant based on the ratio of each participant's Elective
Deferral or Employee Contribution amount during the period to the Elective
Deferral or Employee Contribution amount of all participants. The period
shall be the:
[_] Plan Year
[_] each quarter of the Plan Year
[_] Matching contributions before an employee completes two years of service
shall be _____% (a percentage less than 100%) of matching contributions
thereafter.
Article 6, section 9
Forfeitures and vesting of matching contributions
Matching contributions will be vested in accordance with the following schedule:
[_] Nonforfeitable when made.
[X] The profit-sharing plan's general vesting schedule, other than that for
Elective Deferrals.
Article 6, section 10
Qualified matching contributions N/A
The employer will make Qualified Matching Contributions to the plan on behalf of
[ELECT ONE]:
[_] All participants
[_] All participants who are Non-highly Compensated Employees who make [ELECT
ONE OR BOTH]:
Page 9
[_] Elective Deferrals
[_] Employee Contributions to the plan.
The employer shall contribute and allocate to each participant's Qualified
Matching Contribution account an amount equal to:
[_] ____ percent of the participant's Elective Deferrals
[_] ____ percent of the participant's Employee Contributions
The employer shall not match amounts provided above in excess of $____________,
or in excess of ____ percent, of the participant's Compensation.
Article 6, section 11
Current year testing
If this is not a successor plan, then, if checked [_], for the first Plan Year
this plan provides for Matching Contributions, the ACP used in the ACP test for
participants who are Non-highly Compensated Employees shall be such first Plan
Year's ACP. (Do not check this box if the employer has elected in the adoption
agreement to use the Current Year Testing method.) [X] If checked, this plan is
using the Current Year Testing method for purposes of the ADP and ACP tests.
(This box cannot be "unchecked" for a Plan Year unless (1) the plan has been
using the Current Year Testing method for the preceding 5 Plan Years, or, if
lesser, the number of Plan Years the plan has been in existence; or (2) the plan
otherwise meets one of the conditions specified in Notice 98-1 (or superseding
guidance) for changing from the Current Year Testing method.)
Article 6, section 12
Distribution of excess aggregate contributions
In computing the Average Contribution Percentage, the employer shall take into
account, and include as Contribution Percentage Amounts:
[X] Elective Deferrals
[X] Qualified Non-elective Contributions
under the plan or any other plan of the employer.
The amount of Qualified Non-elective Contributions that are made under Article
6, section 13 of the plan and taken into account as Contribution Percentage
Amounts for purposes of calculating the Average Contribution Percentage shall
be:
[_] All such Qualified Non-elective Contributions.
[X] Such Qualified Non-elective Contributions that are needed to meet the
Average Contributions Percentage test stated in Article 6, section 11of the
plan. (This box can only be checked if the employer has elected in the
adoption agreement to use the Current Year Testing method.)
Page 10
The amount of Elective Deferrals made under Article 6, section 2 of the plan and
taken into account as Contribution Percentage Amounts for purposes of
calculating the Average Contribution Percentage shall be:
[_] All such Elective Deferrals.
[X] Such Elective Deferrals that are needed to meet the Average Contribution
Percentage test stated in Article 6, section 6 of the plan. (This box can
only be checked if the employer has elected in the adoption agreement to
use the Current Year Testing method.)
Forfeitures of Excess Aggregate Contributions shall be:
[X] Applied to reduce employer contributions for the Plan Year in which the
excess arose, but allocated as in b, below, to the extent the excess
exceeds employer contributions or the employer has already contributed for
such Plan Year.
[_] Allocated, after all other forfeitures under the plan, to the Matching
Contribution account of each Non-highly Compensated Employee who made
Elective Deferrals or Employee Contributions in the ratio which each such
employee's Compensation for the Plan Year bears to the total Compensation
of all such employees for such Plan Year.
Article 6, section 13
Qualified non-elective contributions
The employer [ELECT ONE] [X] will [_] will not make Qualified Non-elective
Contributions to the plan. If the employer does make such contributions to the
plan, then the amount of such contributions for each Plan Year shall be [ELECT
ONE]:
[_] ____ percent (not to exceed 15 percent) of the Compensation of all
participants eligible to share in the allocation.
[_] ____ percent of the net profits, but in no event more than $_______ for any
Plan Year.
[X] An amount determined by the employer.
Allocation of Qualified Non-elective Contributions shall be made to the accounts
of [ELECT ONE]:
[_] All participants.
[X] Only participants who are Non-highly Compensated Employees.
Allocation of Qualified Non-elective Contributions shall be made [ELECT ONE]:
[X] In the ratio which each participant's Compensation for the Plan Year bears
to the total Compensation of all participants for such Plan Year.
[_] In the ratio which each participant's Compensation not in excess of
$_______ for the Plan Year bears to the total Compensation of all
participants not in excess of $_______ for such Plan Year.
Page 11
Article 6, section 16
Hardship distributions
Hardship distributions of elective deferrals (elect one):
[X] will be permitted.
[_] will not be permitted.
Article 7, section 1
401(k) SIMPLE Provisions N/A
[_] By checking this box the employer elects to have the 401(k) SIMPLE
Provisions described in Article 7 apply to the plan. (This box may only be
checked if the plan uses a calendar-year plan year and the employer is an
Eligible Employer as defined in Section 2.2 of Article 7. An amendment to
have the 401(k) SIMPLE Provisions no longer apply is effective the next
January 1.
The nonelective contribution described in Section 3.2(b) of the plan will be
allocated to all Eligible Employees who received at least $_______ (INSERT AN
AMOUNT LESS THAN $5,000) Compensation for the Year.
Article 8, section 1
Safe harbor method CODA N/A
[_] If checked, the Safe Harbor CODA provisions of Article 8 apply.
Section 3. ADP Test Safe Harbor Contributions
In lieu of Basic Matching Contributions, the employer will make the following
contributions for the Plan Year [SELECT EITHER OR BOTH]:
[_] Enhanced Matching Contributions. The employer will make Matching
Contributions to the account of each Eligible Employee in an amount equal
to the sum of:
(i) the employee's Elective Deferrals that do not exceed ____ percent of
the employee's Compensation for the Plan Year plus
(ii) ____ percent of the employee's Elective Deferrals that exceed ____
percent of the employee's Compensation for the Plan Year and that do
not exceed ____ percent of the employee's Compensation for the Plan
Year.
[IN THE BLANK IN (i) AND THE SECOND BLANK IN (ii), INSERT A NUMBER THAT IS 3 OR
GREATER BUT NOT GREATER THAN 6. THE FIRST AND LAST BLANKS IN (ii) MUST BE
COMPLETED SO THAT, AT ANY RATE OF ELECTIVE DEFERRALS, THE MATCHING CONTRIBUTION
IS AT LEAST EQUAL TO THE MATCHING CONTRIBUTION RECEIVABLE IF THE EMPLOYER WERE
MAKING BASIC MATCHING CONTRIBUTIONS, BUT THE RATE OF MATCH CANNOT INCREASE AS
DEFERRALS INCREASE. FOR EXAMPLE, IF "4" IS INSERTED IN THE BLANK IN (i), (ii)
NEED NOT BE COMPLETED.]
[_] Safe Harbor Nonelective Contributions The employer will make a Safe Harbor
Nonelective Contribution to the account of each Eligible Employee in an amount
equal to 3 percent of the
Page 12
employee's Compensation for the Plan Year, unless the employer inserts a greater
percentage here ____.
Article 8, section 4.
ACP Test Safe Harbor Matching Contributions N/A
[NO ADDITIONAL CONTRIBUTIONS ARE REQUIRED IN ORDER TO SATISFY THE REQUIREMENTS
FOR A SAFE HARBOR CODA. HOWEVER, IF THE EMPLOYER DESIRES TO MAKE MATCHING
CONTRIBUTIONS OTHER THAN BASIC OR ENHANCED MATCHING CONTRIBUTIONS, THEN COMPLETE
THE FOLLOWING.]
For the Plan Year, the employer will make ACP Test Safe Harbor Matching
Contributions to the account of each Eligible Employee in the amount of [ELECT
ONE]:
[_] ____ percent of the employee's Elective Deferrals that do not exceed 6
percent of the employee's Compensation for the Plan Year.
[_] ____ percent of the employee's Elective Deferrals that do not exceed ____
percent of the employee's Compensation for the Plan Year plus ____ percent
of the employee's Elective Deferrals thereafter, but no Matching
Contributions will be made on Elective Deferrals that exceed 6 percent of
Compensation. [THE NUMBER INSERTED IN THE THIRD BLANK CANNOT EXCEED THE
NUMBER INSERTED IN THE FIRST BLANK.]
[_] the employee's Elective Deferrals that do not exceed a percentage of the
employee's Compensation for the Plan Year. Such percentage is determined by
the employer for the year but in no event can exceed 4 percent of the
employee's Compensation.
Article 8, section 4
Vesting of safe harbor matching contributions N/A
Safe harbor matching contributions will be vested in accordance with the
following schedule:
[_] Nonforfeitable when made.
[_] The profit-sharing plan's general vesting schedule, other than that for
Elective Deferrals.
Article 9, section 5.2
Compensation defined
Compensation will mean all of each participant's:
[X] Wages, tips, and other compensation as reported on Form W-2
[_] Section 3401(a) wages
[_] 415 safe-harbor compensation
Article 9, section 5.8
Highest average compensation N/A
A year of service with the employer is the 12-consecutive month period beginning
_______ and ending _______
Page 13
Article 9, section 5.9
Limitation year
The limitation year is the following 12-consecutive month period: January 1 to
December 31
Article 10, section 1
Post-tax contributions N/A
[_] Participants may make post-tax contributions to the plan, up to ____% of
compensation. Article 12, section 10 Conditions for distribution
Distributions upon termination of employment, for reasons other than retirement,
disability or death, shall not be made unless the following conditions are
satisfied:
[X] distribution shall be made at the participant's election as soon as
practical following the payment of all accrued contributions to the
participant's account.
[_] the participant has incurred ____ 1-year breaks in service.
[_] if the participant's interest in the plan is greater than $________, then
no distribution shall be made until the participant reaches age 59 1/2.
[X] distribution in the form of a single life annuity or a joint and survivor
annuity is not permitted. NOTE: plan must satisfy the Safe-harbor rules of
Article 12, section 6.
[X] In-service distributions are permitted upon reaching age _59 1/2_ (59 1/2
or later). NOTE: plans with an effective date before January 1, 1997 MUST
provide for in-service distributions upon reaching age 70 1/2 or earlier.
Article 13, section 6.6
Required beginning date
The required beginning date of a participant with respect to a plan is (select
one):
[X] the April 1 of the calendar year following the calendar in which the
participant attains age 70 1/2.
[_] the April 1 of the calendar year following the calendar year in which the
participant attains age 70 1/2, except that benefit distributions to a
participant (other than a 5-percent owner) with respect to benefits accrued
after the later of the adoption or effective date of the amendment to the
plan must commence by the later of the April 1 of the calendar year
following the calendar year in which the participant attains age 70 1/2 or
retires.
[_] the later of the April 1 of the calendar year following the calendar year
in which the participant attains age 70 1/2 or retires except that benefit
distributions to a 5-percent owner must commence by the April 1 of the
calendar year following the calendar year in which the participant attains
age 70 1/2. (also select a, b, and/or c, whichever is applicable. (c) must
be selected to the extent that there would otherwise be an elimination of a
preretirement age 70 1/2 distribution option for employees older than those
listed above.)
(a) [_] any participant attaining age 70 1/2 in years after 1995 may
elect by April 1 of the calendar year following the year in which
the participant attained age 70 1/2, (or by December 31, 1997 in
the case of a participant attaining age 70 1/2 in
Page 14
1996) to defer distributions until the calendar year following
the calendar year in which the participant retires. If no such
election is made the participant will begin receiving
distributions by the April 1 of the calendar year following the
year in which the participant attained age 70 1/2 (or by December
31, 1997 in the case of a participant attaining age 70 1/2 in
1996)
(b) [_] any participant attaining age 70 1/2; in years prior to 1997 may
elect to stop distributions and recommence by the April 1 of the
calendar year following the year in which the participant
retires. There is either (select one)
(i) [_] a new annuity starting date upon recommencement, or
(ii) [_] no new annuity starting date upon recommencement.
(c) [_] the preretirement age 70 1/2 distribution option is only
eliminated with respect to employees who reach age 70 1/2 in or
after a calendar year that begins after the later of December 31,
1998, or the adoption date of the amendment. The preretirement
age 70 1/2 distribution option is an optional form of benefit
under which benefits payable in a particular distribution form
(including any modifications that may be elected after benefit
commencement) commence at a time during the period that begins on
or after January 1 of the calendar year in which an employee
attains age 70 1/2 and ends April 1 of the immediately following
calendar year.
Article 14
Direct rollovers
[X] The plan will accept direct rollovers from an eligible retirement plan.
Article 14, section 2
Employer directed rollover N/A
[_] Distributable amounts of participants who fail to respond to the
distribution and tax consideration notice will be rolled over into an
individual retirement account for the benefit of the distributee.
Article 15, section 2
Vesting Provisions
All of an employee's years of service with the employer are counted to determine
the nonforfeitable percentage in the employee's account balance derived from
employer contributions except:
[_] Years of service before age 18;
[_] Years of service before the employer maintained this plan or a predecessor
plan;
Page 15
The nonforfeitable interest of each employee in his or her account balance
attributable to employer non-elective contributions shall be determined on the
basis of the following:
[_] 100% vesting after ____ (not to exceed 3 years) of service.
[X] _____% vesting after 1 year of service.
__20_% (not less than 20) vesting after 2 years of service.
__40_% (not less than 40) vesting after 3 years of service.
__60_% (not less than 60) vesting after 4 years of service.
__80_% (not less than 80) vesting after 5 years of service.
_100_% (not less than 100) vesting after 6 years of service.
Article 15, section 7
Forfeitures
Forfeitures from Profit Sharing contributions and Matching contributions:
[X] will reduce future employer contributions.
[_] will be allocated in the ratio that the compensation of each participant
bears to that of all participants.
[_] will be allocated as if the forfeiture were an additional employer
contribution for that plan year.
Article 16, section 1
Top-heavy valuation
Present value: For purposes of establishing present value to compute the
top-heavy ratio, any benefit shall be discounted only for mortality and interest
based on the following:
Interest rate: _7_% Mortality table: 1983 GAM
Valuation date: For purposes of computing the top-heavy ratio, the valuation
date shall be December 31 of each year.
[_] the minimum allocation or benefit requirement applicable to top-heavy plans
will be met in the other plan or plans maintained by the employer.
Article 17, section 3
Earmarked investments
[X] Each participant will direct the plan as to the type of investment to be
purchased with the participant's account.
[_] Each employee will have a ratable interest in all assets under the plan.
Each participant will direct the plan
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Article 19, section 2
Loan provisions
Loans to participants.
[X] Loans may be made.
[_] Loans may not be made.
[X] The minimum amount of any loan will be $ 1,000 (not to exceed $1,000).
[_] No more than ______ loans may be outstanding at any time.
[X] Loans will not be restricted in purpose.
[_] Loans will be restricted in purpose to:
(a) [_] purchase or maintenance of primary residence.
(b) [_] educational expenses of participant and participant's dependents.
(c) [_] medical expenses of participant and participant's dependents.
(d) [_] other: ______________________________________________
Article 19, section 8
Paired plans
The Gwynedd Company Regional Prototype Plans 001 and 002 are designated Paired
Plans. When both plans are adopted by the same employer, the following apply:
1. Only one of the plans may provide for permitted disparity.
2. Both adoption agreements must provide identical minimum participation
requirement elections (minimum age and service, and entry date) and
coverage elections (excludable employees under regulations section
1.410(b)-6 including employees who are not employed on the last day of the
plan year and who have not completed more than 500 hours of service).
Miscellaneous Provisions
The employer agrees to notify the sponsor, The Gwynedd Company, immediately upon
any change in any information provided in this adoption agreement, pertaining to
the adopting employer or to the plan specifications.
The plan sponsor, The Gwynedd Company, agrees to notify the employer immediately
upon any amendment to the plan document or adoption agreement.
Failure to properly complete this adoption agreement may result in the
disqualification of the plan.
Except as otherwise provided in this paragraph, an employer who has ever
maintained or who later
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adopts any plan (including a welfare benefit fund, as defined in section 419(e)
of the Code, which provides post-retirement medical benefits allocated to
separate accounts for key employees, as defined in section 419A(d)(3) of the
Code, or an individual medical account, as defined in section 415(1)(2) of the
Code) in addition to this plan (other than paired plan # 02) may not rely on the
opinion letter issued by the National Office of the Internal Revenue Service as
evidence that this plan is qualified under section 401 of the Internal Revenue
Code. An employer that adopts a standardized form defined contribution plan will
not be considered to have maintained another plan merely because the employer
has maintained another defined contribution plan(s), provided such other plan(s)
has been terminated prior to the effective date of the standardized form plan
and no annual additions have been credited to the account of any participant
under such other plan(s) as of any date within a limitation year of the
standardized form plan. Likewise, an employer that adopts a standardized form
defined contribution plan that is first effective on or after the effective date
of the repeal of section 415(e) will not be considered to have maintained
another plan merely because the employer has maintained a defined benefit
plan(s), provided the defined benefit plan(s) has been terminated prior to the
effective date of the standardized form defined contribution plan. If the
employer who adopts or maintains multiple plans wishes to obtain reliance that
his or her plan(s) are qualified, application for a determination letter should
be made to Employee Plans Determinations of the Internal Revenue Service. The
employer may not be entitled to rely on the opinion letter in certain other
circumstances, which are specified in the opinion letter issued with respect to
the plan or in section 6 of Revenue Procedure 2000-20.
This adoption agreement may be used only in conjunction with basic plan document
# 01. IN WITNESS WHEREOF, the employer and trustee hereby cause this plan to be
executed on this
______ day of ____________________ , _________ .
EMPLOYER:
By: _____________________________________________ __________________________
Signature Title
TRUSTEE:
______________________________ _____________________________
______________________________ _____________________________
This plan may not be used, and shall not be deemed to be a regional
prototype plan, unless an authorized representative of The Gwynedd Company has
acknowledged the use of the plan.
By: ________________________________
The Gwynedd Company
Page 18
With regard to any questions regarding the provisions of the plan, adoption of
the plan, or the effect of an opinion letter from the IRS, call or write (this
information must be completed by the sponsor of this plan or its designated
representative):
Name: The Gwynedd Company
Address: 0000 Xxxxxxxxxx Xxxx
Xxxxxxxx, Xxxxxxxxxxxx 00000
Phone: (000) 000-0000
FAX: (000) 000-0000
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