Examples of Lookback Year in a sentence
Regardless of whether the Lookback Rule applies, this date is called the UVB Valuation Date to distinguish it from the Participant Count Date (see “How to Count Participants” section).So, for plans using the Lookback Rule, the UVB Valuation Date is the valuation date used to determine the minimum required contribution (i.e., “the funding valuation date”) for the Lookback Year.
This election to use the calendar year as the Lookback Year only applies for purposes of applying the compensation limit under subsection (b) above and not for purposes of applying the Five-Percent Owner test in subsection (a) above.
The Lookback Year is the 12-month period immediately preceding the Determination Year.
If the Plan Year is not the calendar year, the Employer may elect in AA §11-2(c) to use the calendar year that begins in the Lookback Year.
Below are the tests that could be carried out for the benefit of the material standarisation.
For purposes of this determination, an individual is Highly Compensated if, at any time during the Lookback Year, such individual has Total Compensation from the Employer in excess of $120,000 (for 2016 and as adjusted for future years) and, if elected under AA §11-2, is in the Top Paid Group, as defined in subsection (d) below.
An individual is Highly Compensated if at any time during the Lookback Year, such individual has Total Compensation from the Employer in excess of $80,000 (as adjusted) and, if elected under AA §11-2, is in the Top Paid Group, as defined in subsection (f) below.
An individual is Highly Compensated if at any time during the Determination Year or Lookback Year, such individual owns (or is considered as owning within the meaning of Code §318) more than 5 percent of the outstanding stock of the Employer or stock possessing more than 5 percent of the total combined voting power of all stock of the Employer.
Measurement dateUnfunded Vested Benefits are measured on the funding valuation date (i.e., the measurement date for determining the minimum required contribution) for the applicable plan year (i.e., either the Premium Payment Year or the Lookback Year, depending on whether the Lookback Rule applies).
Measurement dateUVBs are measured on the funding valuation date (i.e., the measurement date for determining the minimum required contribution) for the applicable plan year (i.e., either the Premium Payment Year or the Lookback Year, depending on whether the Lookback Rule applies).