Maximum Disparity Rate definition

Maximum Disparity Rate means the greater of (i) 5.7 percent or (ii) the OASDI Rate.

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Maximum Disparity Rate means 5.7% if the Plan is not Top-Heavy or 2.7% if the Plan is Top-Heavy. Trustee shall allocate the Employer Discretionary Contribution for each Plan Year as soon as administratively feasible after receiving the contribution. The Plan Administrator shall deliver to Trustee the information necessary to perform the allocation.

Maximum Disparity Rate means the rate determined in accordance with paragraphs (a), (b) or (c) and (d) below. (a) If the Integration Level selected by the Employer in the Adoption Agreement is equal to the Social Security Wage Base or does not exceed the greater of $10,000 or 20 percent of the Social Security Wage Base, then, except as provided in (d) below, the Maximum Disparity Rate is equal to the greater of (i) 5.7 percent or (ii) the OASDI Rate. (b) If the Integration Level selected by the Employer in the Adoption Agreement exceeds the greater of $10,000 or 20 percent of the Social Security Wage Base but is less than or equal to 80 percent of the Social Security Wage Base, then, except as provided in (d) below, the Maximum Disparity Rate is equal to the greater of (i) 4.3 percent or (ii) the OASDI Rate multiplied by a fraction the numerator of which is 4.3 and the denominator of which is 5.7. (c) If the Integration Level selected by the Employer in the Adoption Agreement exceeds 80 percent of the Social Security Wage Base but is less than the Social Security Wage Base, then, except as provided in (d) below, the Maximum Disparity Rate is equal to the greater of (i) 5.4 percent or

Examples of Maximum Disparity Rate in a sentence

STEP 3: Any contributions remaining after the allocation in Step Two will be allocated to each Participant's account in the ratio that the sum of each Participant's total Compensation and Excess Compensation bears to the sum of all Participants' total Compensation and Excess Compensation, at a rate not in excess of the Maximum Disparity Rate.
If the Integration Level is less than the Taxable Wage Base, the Maximum Disparity Rate must be reduced.
The Integration Rate for a Plan Year will be the Maximum Disparity Rate for such Plan Year.
Step Two - Second, the lesser of (A) the remaining Employer Contribution and Forfeitures for such Plan Year o (B) the product of the Top-Heavy Percentage (or the Maximum Disparity Rate, if less) and the total Excess Compensation of all such Participants shall be allocated in the same ratio that each such Participant's Excess Compensation for such Plan Year bears to the total Excess Compensation of all such Participants for such Plan Year.
First, such contribution (and forfeitures) shall be allocated in the same ratio that the sum of such Participants' Compensation plus Excess Compensation for the Plan Year bears to the sum of all such Participants' Compensation plus Excess Compensation, but the amount so allocated, expressed as a percentage, shall not exceed the Maximum Disparity Rate.
Step Three: Any contributions remaining after the allocation in Step Two will be allocated to each eligible Members’ account in the ratio that the sum of each eligible Members’ Salary and Salary in excess of the Integration Level bears to the sum of all eligible Members’ Salary and Salary in excess of the Integration Level, but not in excess of the Profit Sharing Maximum Disparity Rate times the sum of the Member’s Salary and Salary in excess of the Integration Level.
Third, any remaining contribution (and forfeitures) shall be allocated in the same ratio that the sum of such Participants' Compensation plus Excess Compensation for the Plan Year bears to the sum of all such Participants' Compensation plus Excess Compensation, but the amount so allocated, expressed as a percentage, shall not exceed the Maximum Disparity Rate less three percentage points.
The maximum amount which may be allocated to a Participant under Step Three is the sum of a Participant's total Compensation and Excess Compensation, multiplied by the Maximum Disparity Rate.
For a Plan that uses the Maximum Disparity Rate to allocate Employer Contributions, the contribution rate applied to a Participant's Compensation before the allocation to a Participant's Excess Compensation.
Step Three: Any contributions remaining after the allocation in Step Two will be allocated to each eligible Members’ account in the ratio that the sum of each eligible Members’ Salary and Salary in excess of the Integration Level bears to the sum of all eligible Members= Salary and Salary in excess of the Integration Level, but not in excess of the Profit Sharing Maximum Disparity Rate times the sum of the Member=s Salary and Salary in excess of the Integration Level.

More Definitions of Maximum Disparity Rate

Maximum Disparity Rate means the rate determined in accordance with paragraphs (a), (b) or (c) and (d) below.

Maximum Disparity Rate for a Plan Year, subject to (ii) below, means the greater of --

Maximum Disparity Rate means the rate determined in accordance ---------------------- with paragraphs (a), (b) or (c) and (d) below. (a) If the Integration Level selected by the Employer in the Adoption Agreement is equal to the Social Security Wage Base or does not exceed the greater of $10,000 or 20 percent of the Social Security Wage Base, then, except as provided in (d) below, the Maximum Disparity Rate is equal to the greater of (i) 5.7 percent or (ii) the OASDI Rate. (b) If the Integration Level selected by the Employer in the Adoption Agreement exceeds the greater of $10,000 or 20 percent of the Social Security Wage Base but is less than or equal to 80 percent of the Social Security Wage Base, then, except as provided in (d) below, the Maximum Disparity Rate is equal to the greater of (i) 4.3 percent or (ii) the OASDI Rate multiplied by a fraction the numerator of which is 4.3 and the denominator of which is 5.7. (c) If the Integration Level selected by the Employer in the Adoption Agreement exceeds 80 percent of the Social Security Wage Base but is less than the Social Security Wage Base, then, except as provided in (d) below, the Maximum Disparity Rate is equal to the greater of (i) 5.4 percent or (ii) the OASDI Rate multiplied by a fraction the numerator of which is 5.4 and the denominator of which is 5.7. (d) If allocations for a Plan Year are made on an integrated basis pursuant to Section 4.03(b)(ii) and the provisions of Section 23.03 are applicable for such Plan Year, then for purposes of determining the Integration Rate as applied to limit allocations under Section 4.03(b)(ii), the Maximum Disparity Rate determined in accordance with paragraph (a), (b) or (c) above shall be reduced by 3 percent. If the Employer has elected in the Adoption Agreement to make a 4 percent minimum allocation pursuant to Section 23.07(b), then 4 percent shall be substituted for 3 percent in the preceding sentence.