Average Contribution Percentage Test Sample Clauses
The Average Contribution Percentage Test is a compliance measure used in retirement plans to ensure that contributions made by non-highly compensated employees are proportionate to those made by highly compensated employees. This test calculates the average percentage of compensation contributed by each group and compares the results to confirm that the plan does not disproportionately favor higher-paid employees. By enforcing this balance, the clause helps maintain the plan's qualified status and prevents discrimination in favor of key employees, thereby promoting fairness and regulatory compliance.
Average Contribution Percentage Test. The annual allocation derived ------------------------------------ from Employee Contributions, Employer Matching Contributions, and Qualified Matching Contributions to a Participant's Individual Account shall satisfy one of the following tests:
(i) The Average Contribution Percentage for Participants who are Eligible Highly Compensated Employees for the Plan Year shall not exceed the Average Contribution Percentage for Participants who are Eligible Nonhighly Compensated Employees for the Plan Year multiplied by 1.25; or
(ii) The Average Contribution Percentage for Participants who are Eligible Highly Compensated Employees for the Plan Year shall not exceed the Average Contribution Percentage for Participants who are Eligible Nonhighly Compensated Employees for the Plan Year multiplied by two (2); provided that the Average Contribution Percentage for Participants who are Eligible Highly Compensated Employees for the Plan Year does not exceed the Average Contribution Percentage for Participants who are Eligible Nonhighly Compensated Employees for the Plan Year by more than two (2) percentage points or the amount prescribed in applicable Treasury regulations to prevent the multiple use of this alternative limitation for any Highly Compensated Employee.
Average Contribution Percentage Test. The term Average Contribution Percentage (or ACP) Test means the greater of one of the following nondiscrimination tests for Matching Contributions and Employee contributions: (1) the ACP for Participants who are HCEs will not exceed the ACP for Participants who are NHCEs multiplied by 1.25; or (b) the ACP for Participants who are HCEs will not exceed the ACP for Participants who are NHCEs multiplied by 2.0, provided that the ACP for Participants who are HCEs does not exceed the ACP for Participants who are NHCEs by more than 2 percentage points. The ACP Test for any Plan Year will be determined in accordance with the following:
Average Contribution Percentage Test. 26 A.7 Excess Aggregate Contributions...................................
Average Contribution Percentage Test. 14.09 (14.08) Beneficiary.................................. 1.11 (1.03)
Average Contribution Percentage Test. Also, Employer Safe-Harbor Matching and Safe-Harbor Profit Sharing Contributions may be taken into account in applying the Average Contribution Percentage Test, but only to the extent they exceed the minimum contribution required to qualify as safe- harbor contributions.]
Average Contribution Percentage Test. (a) In computing the Average Contribution Percentage (ACP), the Employer shall take into account, and include as Contribution Percentage Amounts: (1) Elective Deferrals; or
Average Contribution Percentage Test. 14.09 (14.07) Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . 1.11 (1.03) Break in Service for Eligibility Purposes . . . . . . . . . .
Average Contribution Percentage Test. (a) In computing the Average Contribution Percentage (ACP), the Employer shall take into account, and include as Contribution Percentage Amounts:
(1) Elective Deferrals; or
(2) Qualified Nonelective Contributions under this Plan or any other plan of the Employer, as provided by regulations.
(b) The amount of Elective Deferrals made under Section 14.77 and taken into account as Contribution Percentage Amounts for purposes of calculating the Average Contribution Percentage, subject to such other requirements as may be prescribed by the Secretary of the Treasury, shall be:
(1) all such Elective Deferrals; or
Average Contribution Percentage Test. 14.09 (14.08) Beneficiary . . . . . . . . . . . . . . . . . . . . . . . 1.11 (1.03)
Average Contribution Percentage Test