Common use of Contribution Allocation Clause in Contracts

Contribution Allocation. There are two approaches for allocating (dividing up) the contribution to participants. Option (a) mirrors the contribution formula chosen in Section 3.01. Option (a) must be chosen if the employer chose either integrated contribution formula 3.01(a) or (b) of if the employer chose 3.01(d)(2) or (d)(3). (b) allows the employer to take a "profit sharing" approach to allocating the contribution if the employer chose a fixed percentage or amount in Section 3.01. Under option (b) the employer has the choice of pro-rate (nonintegrated) or a two-tiered integrated formula. (c) is available only in addition to options (a) and (b). Option