Common use of Contributions in Excess of Limits Clause in Contracts

Contributions in Excess of Limits. Contributions and earnings thereon may be forfeited in accordance with the terms of Section 6. 9.1 Methods of Benefit Payment. (a) Normal Form of Payment. The normal form of payment of an Accountholder’s benefit is a cash lump-sum distribution equal to the Accountholder’s total Account Balance valued as of the Accounting Date coincident with or immediately before such distribution, and, except as otherwise provided herein, all benefits will be paid in such form. (b) Small Account Balance. (i) Subject to subsection (b)(ii) below, if the Accountholder’s aggregate account balances in all retirement plans administered by the Administrator (except pre-82 balances in MPP) at the time of distribution does not exceed $5,000, the entire amount of the Accountholder’s Vested Account Balance will be distributed as a lump sum to the Accountholder as soon as administratively feasible. (ii) When: (A) a distribution from this Plan to an Accountholder exceeds $1,000 (including amounts from the Accountholder’s Rollover Account); (B) the Accountholder’s aggregate account balances in all retirement plans administered by the Administrator (except pre-82 balances in MPP) does not exceed $5,000; and (C) the Accountholder: (I) has not requested to receive the distribution; (II) has not requested that the distribution be rolled over to another eligible retirement plan or IRA specified by the Accountholder; (III) has not attained age 62; (IV) is not a surviving Spouse; (V) is not an Alternate Payee; and (VI) has not attained his or her Required Beginning Date, then the Administrator will pay the distribution in a direct rollover to an IRA designated by the Administrator and invested in an investment type designated by the Administrator for the benefit of the Accountholder. Before making such rollover, the Administrator will provide, separately or as part of the notice specified in Section 9.5 below, a notice to such Accountholder stating that, absent his or her affirmative election, the distribution will be automatically rolled over to an IRA. The notice will also identify the custodian, trustee, or other issuer of the IRA. In carrying out this subsection (b)(ii), the Administrator will comply with IRS Notice 2005-5 and other applicable advice from the IRS and Treasury Regulations. IRS Notice 2005-5 provided that such rollovers to an IRA may be deferred after March 28, 2005 when required to allow the Administrator time to arrange for such rollovers. The Administrator may make rules consistent with applicable Treasury Regulations to govern its administration of distributions and rollovers under this Section during the transition period to full compliance with IRS Notice 2005-5.