Nonallocation Year definition

Nonallocation Year means a plan box in item H and enter the tax reported

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Nonallocation Year means any Plan Year if, at any time during such Plan Year: (i) the Plan holds employer securities consisting of stock in an S Corporation; and (ii) disqualified persons own at least 50 percent of the number of shares of stock in the S Corporation. For purposes of this definition, the rules of Code section 318(a) shall apply for purposes of determining ownership, except that in applying Code section 318(a)(1), the members of an individual’s family shall include members of the family defined in Subsection (3)(D) herein pursuant to Code section 409(p)(4)(D) and Code section 318(a)(4) regarding options shall not apply. Notwithstanding the employee trust exception in Code section 318(a)(2)(B)(i), an individual shall be treated as owning deemed-owned shares of the individual. Solely for purposes of applying Code section 409(p)(5) (regarding the treatment of synthetic equity), this definition of a nonallocation year shall be applied after the attribution rules of Section 5.04(b)(3)(E)(1) and Code section 409(p)(5) have been applied.

Nonallocation Year means any Plan Year if, at any time during such Plan Year:

Examples of Nonallocation Year in a sentence

• In a Nonallocation Year, all Employer Stock consisting of shares in the S corporation and all other Plan assets attributable to S corporation shares held in a Disqualified Person’s Plan account are an Impermissible Accrual for the benefit of that Disqualified Person, regardless of whether such Impermissible Accrual is attributable to contributions in the current year or prior years.

• In a Nonallocation Year, an Impermissible Allocation occurs if any annual addition (as described in Section 5.9 of the Plan) is made to the Plan account of a Disqualified Person.

• For any period in which the Company is an S-corporation, no allocation of Company Stock (or other assets in lieu of such Stock) may be made to any “Disqualified Person” (as defined below) during any “Nonallocation Year” (as defined below) or if such allocation would result in a Nonallocation Year.

• No portion of the assets of the Plan attributable to (or allocable in lieu of) Employer Securities consisting of stock in a “Subchapter S Corporation” may, during a Nonallocation Year, accrue (or be allocated directly or indirectly under any plan of the Employer meeting the requirements of Section 401(a) of the Code) for the benefit of any Disqualified Person.

• The Nonallocation Year Attribution Rules apply for purposes of determining ownership.

• An Impermissible Allocation also occurs in a Nonallocation Year if a Disqualified Person accrues additional benefits, directly or indirectly, under the Plan or any other qualified plan of the Employer that would have been allocated to the Plan account of the Disqualified Person for the Nonallocation Year and invested) in Employer Stock consisting of stock in an S corporation owned by the Plan, but for a Plan provision that precludes such allocation and investment.

More Definitions of Nonallocation Year

Nonallocation Year means any Plan Year, if at any time during such Plan Year, the Plan holds Employer Stock in an S Corporation and Disqualified Persons own or are deemed to own at least fifty (50) percent of the number of shares of Employer Stock in the S Corporation.

Nonallocation Year means a "nonallocation year" as defined in Section 409(p)(3) of the Code and the regulations issued with respect thereto.

Nonallocation Year means a Plan Year during which, at any time, more than 50% of the outstanding stock of the Company is held by Disqualified Persons. Synthetic Equity held by Disqualified Persons (but not by others) and all other Deemed-Owned Shares held by a Disqualified Person shall be included in the determination of whether there is a Nonallocation Year. The ownership attribution rules of Code Section 318(a) shall apply for this purpose, except that the family members as described in Code Section 318(a)(1) shall include all of (1) the person’s spouse, (2) the ancestors and lineal descendants of the person and the person’s spouse, (3) siblings of the person and the person’s ▇▇▇▇▇▇, and lineal descendants of such siblings, and (4) the spouse of any person described in (2) or (3).

Nonallocation Year means any Plan Year of the Plan if, at any time during such Plan Year:

Nonallocation Year means any Plan Year if, at any time during such Plan Year, (1) the Plan holds Employer Securities consisting of stock in an S corporation, and (2) Disqualified Persons (as that term is defined for purposes of Section 6.16) own at least 50 percent of the number of shares of stock in the S corporation.

Nonallocation Year means any Plan Year if, at any time during such Plan year –