Common use of Allocation Limitations Clause in Contracts

Allocation Limitations. If the Employer maintains or has ever maintained another qualified plan (other than this Plan and the Prototype Profit Sharing Plan #001), in which any Participant in this Plan is (or was) a participant or could become a participant, this Section IX must be completed. The Employer must also complete this Section IX if it maintains a welfare benefit fund, as defined in Section 419(e) of the Code, or an individual medical account, as defined in Section 415(l)(2) of the Code, under which amounts are treated as annual additions with respect to any Participant in this Plan. IF YOU MAINTAIN SUCH OTHER PLAN(S), FAILURE TO COMPLETE THIS SECTION IX MAY ADVERSELY EFFECT THE QUALIFICATION OF THE PLANS YOU MAINTAIN. A. If a Participant is covered under another qualified defined contribution plan maintained by the Employer, other than a master or prototype plan (choose either 1 or 2): 1. The provisions of Section 13.2 of the Plan will apply as if the other plan were a master or prototype plan. 2. (On an attachment, provide the method under which the plans will limit total annual additions to the maximum permissible amount, and will properly reduce any excess amounts, in a manner that precludes Employer discretion.) B. If a Participant is or has ever been a participant in a defined benefit plan maintained by the Employer (choose either 1 or 2): 1. In any limitation year, the annual additions credited to the Participant under this Plan may not cause the sum of the defined benefit plan fraction and the defined contribution plan fraction to exceed 1.0. If the Employer contributions that otherwise would be allocated to the Participant's Account during such year would cause the 1.0 limitation to be exceeded, the allocation will be reduced so that the sum of the fractions equal 1.0. Any contributions not allocated because of the preceding sentence will be allocated to the remaining Participants under the Plan. If the 1.0 limitation is exceeded, such excess amount will be reduced in accordance with Section 13.1(d) of the Plan. 2. On an attachment, provide the method under which the plan involved will satisfy the 1.0 limitation in a manner that precludes Employer discretion.

Appears in 1 contract

Sources: Custodial Agreement (Eagle Growth Shares Inc)

Allocation Limitations. If the Employer maintains or has ever maintained another qualified plan (other than this Plan and the Prototype Profit Sharing Money Purchase Revision Plan #001002), in which any Participant in this Plan is (or was) a participant or could become a participant, this Section IX VIII must be completed. The Employer must also complete this Section IX VIII if it maintains a welfare benefit fund, as defined in Section 419(e) of the Code, or an individual medical account, as defined in Section 415(l)(2) of the Code, under which amounts are treated as annual additions with respect to any Participant in this Plan. IF YOU MAINTAIN SUCH OTHER PLAN(S), FAILURE TO COMPLETE THIS SECTION IX VIII MAY ADVERSELY EFFECT THE QUALIFICATION OF THE PLANS YOU MAINTAIN. A. If a Participant is covered under another qualified defined contribution plan maintained by the Employer, other than a master or prototype plan (choose either 1 or 2): 1. The provisions of Section 13.2 of the Plan will apply as if the other plan were a master or prototype plan. 2. (On an attachment, provide the method under which the plans will limit total annual additions to the maximum permissible amount, and will properly reduce any excess amounts, in a manner that precludes Employer discretion.) B. If a the Participant is or has ever been a participant in a defined benefit plan maintained by the Employer Employer, (choose either 1 or 2): 1. In any limitation year, the annual additions credited to the Participant under this Plan may not cause the sum of the defined benefit plan fraction and the defined contribution plan fraction to exceed 1.0. 1.0 If the Employer contributions that otherwise would be allocated to the Participant's Account during such year would cause the 1.0 limitation to be exceeded, the allocation will be reduced so that the sum of the fractions equal 1.0. Any contributions not allocated because of the preceding sentence will be allocated to the remaining Participants under the Plan. If the 1.0 limitation is exceeded, such excess amount will be reduced in accordance with Section 13.1(d) of the Plan. 2. On an attachment, provide the method under which the plan involved will use to satisfy the 1.0 limitation in a manner that precludes Employer discretion.

Appears in 1 contract

Sources: Custodial Agreement (Eagle Growth Shares Inc)