CASH OR DEFERRED ARRANGEMENT Clause Samples
A Cash or Deferred Arrangement (CODA) is a provision in retirement plans, such as 401(k) plans, that allows employees to choose between receiving their compensation in cash or deferring a portion of it into a qualified retirement account. Under this arrangement, employees can elect to have a specified amount of their salary contributed to their retirement plan on a pre-tax basis, reducing their current taxable income. This clause is essential for enabling employees to save for retirement in a tax-advantaged manner, while also providing flexibility in how they receive their compensation.
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CASH OR DEFERRED ARRANGEMENT. If the Employer elects a cash or deferred arrangement, a Participant may elect to make a cash election against his proportionate share of the Employer's Cash or Deferred Contribution, in accordance with the Employer's elections in Adoption Agreement Section
3.01. A Participant's proportionate share of the Employer's Cash or Deferred Contribution is the percentage of the total Cash or Deferred Contribution which bears the same ratio that the Participant's Compensation for the Plan Year bears to the total Compensation of all Participants for the Plan Year. For purposes of determining each Participant's proportionate share of the Cash or Deferred Contribution, a Participant's Compensation is his Compensation as determined under Section 1.12 of the Plan (as modified by Section 3.06 for allocation purposes), excluding any effect the proportionate share may have on the Participant's Compensation for the Plan Year. The Advisory Committee will determine the proportionate share prior to the Employer's actual contribution to the Trust, to provide the Participants the opportunity to file cash elections. The Employer will pay directly to the Participant the portion of his proportionate share the Participant has elected to receive in cash.
CASH OR DEFERRED ARRANGEMENT. If the Employer elects a cash or deferred arrangement, a Participant may elect to make a cash election against his proportionate share of the Employer's Cash or Deferred Contribution, in accordance with the Employer's elections in Adoption Agreement Section
CASH OR DEFERRED ARRANGEMENT. If the Employer in its Adoption Agreement Section 3.02 elects a cash or deferred arrangement, a Participant may elect to make a cash election against his/her proportionate share of the Employer's cash or deferred contribution, in accordance with the Employer's Adoption Agreement elections. A Participant's proportionate share of the Employer's cash or deferred contribution is the percentage of the total cash or deferred contribution which bears the same ratio that the Participant's Compensation for the Plan Year bears to the total Compensation of all Participants for the Plan Year. For purposes of determining each Participant's proportionate share of the cash or deferred contribution, a Participant's Compensation is his/her Compensation as determined under Section 1.07, excluding any effect the proportionate share may have on the Participant's Compensation for the Plan Year. The Plan Administrator will determine the proportionate share prior to the Employer's actual contribution to the Trust, to provide the Participants the opportunity to file cash elections. The Employer will pay directly to the Participant the portion of his/her proportionate share the Participant has elected to receive in cash.
CASH OR DEFERRED ARRANGEMENT. Each Employee except the following shall be eligible to participate in the 401(k) Cash or Deferred Arrangement, any Matching Contributions, any Qualified Matching Contributions or any Qualified Non-elective Contributions which the Employer may make to the Plan in accordance with Section 5 above. (Eligibility for participation in any Discretionary Profit Sharing Contributions shall be determined in Section 6.2 below).
a. Employees who have not attained the age of _____ (cannot exceed 21).
b. Employees who have not completed Year of Service (cannot exceed 1 year). If the Year of Service selected is or includes a fractional year, an Employee will not be required to complete any specified Hours of Service to receive credit for such fractional year.
c. Employees included in a unit of Employees covered by a collective bargaining agreement between the Employer and Employee Representatives, if retirement benefits were the subject of good faith bargaining SHALL NOT be eligible to participate. For this purpose, the term "Employee Representatives" does not include any organization more than half of whose members are employees who are owners, officers, or executives of the Employer.
d. Employees who are nonresident aliens (within the meaning of Code Section 7701(1)(B)) and who received no earned income (within the meaning of Code Section 911(d)(2)) from the Employer which constitutes income from sources within the United States (within the meaning of Code Section 861(a)(3)).
e. The age and service requirement for eligibility to participate shall be waived for individuals employed on the Effective Date of this Adoption Agreement.
CASH OR DEFERRED ARRANGEMENT. The Employer will contribute on behalf of each Participant the portion of the Participant's proportionate share of the cash or deferred contribution which he has not elected to receive in cash. See Section 14.02
CASH OR DEFERRED ARRANGEMENT. (The Plan Sponsor may choose to offer this provision in his Plan)
CASH OR DEFERRED ARRANGEMENT. (CODE SECTION 401(k)) ----------------------
Section 5.1. Cash or Deferred Arrangement (Code Section 401(k)). The provisions of this Article shall be effective as of the first day of the Plan Year in which this cash or deferred arrangement is elected in item 8 of the Adoption Agreement (Profit Sharing Plan). Under no circumstances shall the provisions of this Article apply prior to the time specified in the preceding sentence.
CASH OR DEFERRED ARRANGEMENT. [check if desired]: X The --- plan shall include a Cash or Deferred Arrangement ("CODA") described in Section 401(k) of the Code.
CASH OR DEFERRED ARRANGEMENT. A. The plan shall not include a Cash or Deferred Arrangement described in Section 401(k) of the Code (2.1). [If the above option is selected, do not complete the remaining questions of item VII.] X The plan shall include a Cash or Deferred Arrangement described in Section 401(k) of the Code. [If the above option is selected, please complete the remaining questions of item VII.]
B. Elective deferrals (1.20; 2.1):
(1) Amount of elective deferrals: [Select any applicable options and complete as appropriate] A participant may elect to have his compensation (as selected under Item VI. above) reduced by the following percentage or amount per payroll period, as designated in writing to the plan administrator: [Select and complete one or both options below] X (a) Up to 14% of the employee's compensation considered under the plan. ____ (b) An amount not in excess of $______.
(2) Change of elective deferrals (2.1.1): A participant may modify the amount of elective deferrals contributed to the plan on his behalf effective as of the first full payroll period beginning on or after the: [Select one] ____ (a) First day of the next succeeding plan year. ____ (b) First day of the plan year and the first day of the seventh month of the plan year.
CASH OR DEFERRED ARRANGEMENT. The plan shall not include a Cash or Deferred Arrangement ---- described in Section 401(k) of the Code (2.1). [If the above option is selected, do not complete the remaining questions of item VII.] X The plan shall include a Cash or Deferred Arrangement described in ---- Section 401(k) of the Code. [If the above option is selected, please complete the remaining questions of item VII.]