Common use of Determining the Actual Deferral Percentages Clause in Contracts

Determining the Actual Deferral Percentages. For purposes of this 401(k) Feature, the actual deferral percentage for a Plan Year means, for a specified group of Members for a Plan Year, the average of the ratios (calculated separately for each Member in such group) of (a) the amount of 401(k) deferrals (including, as provided in Section 3.10, any Employer qualified nonelective contributions) made to the Member=s Account for the Plan Year, to (b) the amount of the Member=s Compensation . For this purpose, Compensation shall mean total taxable Compensation as reported on Form W-2, including elective deferrals, in accordance with Section 11.1(B)(i)(b). Alternatively, where specifically elected by the Employer, Compensation shall be recognized for only that part of the Plan Year during which the Member was eligible to participate in the Plan. Notwithstanding anything in this Section 3.11 to the contrary, and in accordance with IRS Regulation Sections 1.401(k)-2(a)(6)(iv) and 1.401(m)-2(a)(6)(v), no qualified nonelective contributions shall be taken into account in determining the actual deferral percentage for a Plan Year for a Non-highly Compensated Employee under the Plan to the extent such contributions exceed for such Non-highly Compensated Employee the greater of (i) 5% of the Non-highly Compensated Employee’s Compensation (as defined in Code Section 414(s) and (ii) the product of (A) two (2) times the “Plan’s representative contribution rate” (within the meaning, as applicable, of IRS Regulation Section 1.401(k)-2(a)(6)(iv) and Section 1.401(m)-2(a)(6)(v)) and (B) the Non-highly Compensated Employee’s Compensation (as defined in Code Section 414(s)).

Determining the Actual Deferral Percentages. For purposes of this 401(k) Feature, the actual deferral percentage for a Plan Year means, for a specified group of Members for a Plan Year, the average of the ratios (calculated separately for each Member in such group) of (a) the amount of 401(k) deferrals (including, as provided in Section 3.10, any Employer qualified nonelective contributions) made to the Member=s ’s Account for the Plan Year, to (b) the amount of the Member=s Compensation ’s Compensation. For this purpose, Compensation shall mean total taxable Compensation as reported on Form W-2, including elective deferrals, in accordance with Section 11.1(B)(i)(b). Alternatively, where specifically elected by the Employer, Compensation shall be recognized for only that part of the Plan Year during which the Member was eligible to participate in the Plan. Notwithstanding anything in this Section 3.11 to the contrary, and in accordance with IRS Regulation Sections 1.401(k)-2(a)(6)(iv) and 1.401(m)-2(a)(6)(v), no qualified nonelective contributions shall be taken into account in determining the actual deferral percentage for a Plan Year for a Non-highly Compensated Employee under the Plan to the extent such contributions exceed for such Non-highly Compensated Employee the greater of (i) 5% of the Non-highly Compensated Employee’s Compensation (as defined in Code Section 414(s) and (ii) the product of (A) two (2) times the “Plan’s representative contribution rate” (within the meaning, as applicable, of IRS Regulation Section 1.401(k)-2(a)(6)(iv) and Section 1.401(m)-2(a)(6)(v)) and (B) the Non-highly Compensated Employee’s Compensation (as defined in Code Section 414(s)).