Adjustment for Excess Annual Additions Clause Samples

The "Adjustment for Excess Annual Additions" clause defines how a retirement or benefit plan corrects situations where contributions to a participant's account exceed the annual limits set by law. In practice, this clause outlines the procedures for identifying excess contributions, reallocating or refunding the surplus, and ensuring compliance with IRS regulations. Its core function is to maintain the plan's tax-qualified status and protect both the employer and participants from penalties by promptly addressing and remedying over-contributions.
Adjustment for Excess Annual Additions. For any Limitation Year, if the Annual Additions allocated to a Participant’s Account exceeds the Annual Additions limitation of Section
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Adjustment for Excess Annual Additions. (A) If as a result of the allocation of Forfeitures, a reasonable error in estimating a Participant's Compensation or other facts and circumstances to which Regulation Section 1.415-6(b)(6) shall be applicable, the Annual Additions under this Plan would cause the maximum Annual Addition to be exceeded for any Participant, the Plan Administrator shall (1) return any Elective Contributions credited for the Limitation Year to the extent that the return would reduce the excess amount in the Participant's accounts, (2) hold any excess amount remaining after the return of any Elective Contributions in a "Section 415 suspense account", (3) allocate and reallocate the "Section 415 suspense account" in the next Limitation Year (and succeeding Limitation Years if necessary) to all Participants in the Plan before any Employer or Employee contributions which would constitute Annual Additions are made to the Plan for such Limitation Year, and (4) reduce Employer Contributions to the Plan for such Limitation Year by the amount of the "Section 415 59. suspense account" allocated and reallocated during such Limitation Year. (B) For purposes of this Article, "excess amount" for any Participant for a Limitation Year shall mean the excess, if any, of (1) the Annual Additions which would be credited to the Participant's account under the terms of the Plan without regard to the limitations of Code Section 415 over (2) the maximum Annual Additions determined pursuant to Section 3.09. (C) For purposes of this Section, "Section 415 suspense account" shall mean an unallocated account equal to the sum of excess amounts for all Participants in the Plan during the Limitation Year. The "Section 415 suspense account" shall not share in any earnings or losses of the Trust Fund. (D) The Plan may not distribute "excess amounts" to Participants or former Participants.
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Adjustment for Excess Annual Additions. Notwithstanding any provision of the Plan to the contrary, if the "annual additions" (as defined in Section 4.4) are exceeded for any Participant, then the Plan may only correct such excess in accordance with the Employee Plans Compliance Resolution System (EPCRS) as set forth in Revenue Procedure 2013-12 or any superseding guidance.
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Adjustment for Excess Annual Additions 
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Related to Adjustment for Excess Annual Additions

  • Annual Adjustments Base Rent shall be increased on each annual anniversary of the first day of the first full month during the Term of this Lease (each an “Adjustment Date”) by multiplying the Base Rent payable immediately before such Adjustment Date by the Rent Adjustment Percentage and adding the resulting amount to the Base Rent payable immediately before such Adjustment Date. Base Rent, as so adjusted, shall thereafter be due as provided herein. Base Rent adjustments for any fractional calendar month shall be prorated.

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  • Annual Adjustment From January 1 of the next year, the loan interest rate shall be adjusted, on the basis of the LPR recently published, in accordance with the increased or decreased percentage points agreed herein;

  • Annual Contributions □ Check enclosed in the amount of $ representing current contribution for tax year 20 .

  • Matching Contributions The Employer will make matching contributions in accordance with the formula(s) elected in Part II of this Adoption Agreement Section 3.01.