Distribution of Excess Deferrals Sample Clauses
The "Distribution of Excess Deferrals" clause outlines the procedures for handling employee contributions to retirement plans that exceed the annual limits set by law. Typically, this clause specifies how and when excess deferrals must be identified and returned to the employee, often including deadlines for notification and distribution, as well as any tax implications. Its core practical function is to ensure compliance with IRS regulations, prevent tax penalties for both the employer and employee, and maintain the qualified status of the retirement plan.
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Distribution of Excess Deferrals. Notwithstanding any provision of the Custodial Agreement, to the contrary, if the Participant assigns any excess deferrals to the Account in accordance with the procedures described in (b) above or if the Plan Administrator determines that the Participant has made excess deferrals to the Account on the basis of the Participant’s total contributions to the Account and all other plans of the Employer, the Participant or Plan Administrator may provide instructions to the Master Custodial Administration Agreement Administrator, who shall instruct the Custodian to distribute the amount of such excess deferrals, adjusted for any income or loss allocable thereto. If the Master Custodial Administration Agreement Administrator receives timely written notification of the excess deferral, the amount of such excess deferral, adjusted for any income or loss allocable thereto, shall be distributed to the Participant no later than the first April 15 following the close of the taxable year in accordance with the procedures of Section 402(g)(2)(A) of the Code and the regulations thereunder.
Distribution of Excess Deferrals. 🞎 (i) Distribution of Excess Deferrals will be made from ▇▇▇▇ and Pre-Tax Deferral Accounts in the same proportion that deferrals were allocated to such Accounts for the calendar year. 🞎 (ii) Distribution of Excess Deferrals will be made first from the ▇▇▇▇ Deferral Account and then from the Pre-Tax Deferral Account. 🞎 (iii) Distribution of Excess Deferrals will be made first from the Pre-Tax Deferral Account and then from the ▇▇▇▇ Deferral Account.
Distribution of Excess Deferrals. Notwithstanding any provision of the Agreement to the contrary, the Employer or the Plan TPA may direct the Custodian in writing to distribute“excess deferrals,” as defined in Code Section 402(g)(2)(A). If the Custodian receives timely written notification of the excess deferral, then the amount of such excess deferral, adjusted for any income or loss allocable thereto, shall be distributed to the Participant no later than the first April 15 following the close of the taxable year, in accordance with Code Section 402(g)(2)(A) and the regulations thereunder. The Custodian shall have no obligation to independently determine or effect distribution of any such amount.
Distribution of Excess Deferrals. If a Participant makes Section 401(k) Deferrals under this Plan during a calendar year which exceed the dollar limitation under Code ?402(g), the Participant will receive a corrective distribution from the Plan of the Excess Deferrals (plus allocable income) no later than April 15 of the following calendar year. The amount which must be distributed as a correction of Excess Deferrals for a calendar year equals the amount of Elective Deferrals the Participant contributes in excess of the dollar limitation under Code ?402(g) during the calendar year to this Plan, and any other plan maintained by the Employer, reduced by any corrective distribution of Excess Deferrals the Participant receives during the calendar year from this Plan or other plan(s) maintained by the Employer. Excess Deferrals that are distributed after April 15 are includible in the Participant's gross income in both the taxable year in which deferred and the taxable year in which distributed.
(i) Allocable gain or loss. A corrective distribution of Excess Deferrals must include any allocable gain or loss for the calendar year in which the Excess Deferrals are made. For this purpose, allocable gain or loss on Excess Deferrals may be determined in any reasonable manner, provided the manner used to determine allocable gain or loss is applied uniformly and in a manner that is reasonably reflective of the method used by the Plan for allocating income to Participants' Accounts.
(ii) Coordination with other provisions. A corrective distribution of Excess Deferrals made by April 15 of the following calendar year may be made without consent of the Participant or the Participant's spouse, and without regard to any distribution restrictions applicable under Article 8 or Article 9. A corrective distribution of Excess Deferrals made by the appropriate April 15 also is not treated as a distribution for purposes of applying the required minimum distribution rules under Article 10.
(iii) Coordination with corrective distribution of Excess Contributions. If a Participant for whom a corrective distribution of Excess Deferrals is being made received a previous corrective distribution of Excess Contributions to correct the ADP Test for the Plan Year beginning with or within the calendar year for which the Participant made the Excess Deferrals, the previous corrective distribution of Excess Contributions is treated first as a corrective distribution of Excess Deferrals to the extent necessary to eliminate the Ex...
Distribution of Excess Deferrals. In the event that a Participant has Excess Deferrals, the Plan will distribute to the Participant the Excess Deferrals and allocable net income, gain or loss, in accordance with this Section 3.10.
Distribution of Excess Deferrals. If a Participant is required to include in his gross income for a calendar year elective deferrals (as defined in Code section 402(g)(3)) which exceeded Twelve Thousand Dollars ($12,000) (or such greater amount as determined by the Secretary of the Treasury pursuant to cost-of-living increases) for such year, such amounts shall be referred to as “Excess Deferrals” and shall be distributed to the Participant. The Plan Administrator shall distribute such Excess Deferrals, adjusted for any income or losses allocable to such amount (determined in accordance with the principles of Subsection 4.05(3)(b)), for the Plan Year in question not later than the time determined under Subsection 4.05(3)(b), provided, however, that the amount of Excess Deferrals to be distributed shall be reduced by Excess Contributions previously distributed in accordance with Subsection 4.05(3)(b) to the Employee from the Plan which are attributable to such Plan Year. Any distribution made pursuant to this Section may be made notwithstanding any other provision of this Plan.
Distribution of Excess Deferrals and Excess Annual Additions will be made first from the Pre-Tax Deferral Account and then from the ▇▇▇▇ Deferral Account. (e) Distribution of Salary Deferrals to Highly Compensated Employees to correct ADP or ACP Test failure. (1) Distribution of Excess Contributions (or Excess Aggregate Contributions) will be made from ▇▇▇▇ and Pre- Tax Deferral Accounts in the same proportion that deferrals were allocated to such Accounts for the Plan Year. (2) Distribution of Excess Contributions (or Excess Aggregate Contributions) will be made first from the ▇▇▇▇ Deferral Account and then from the Pre-Tax Deferral Account. (3) Distribution of Excess Contributions (or Excess Aggregate Contributions) will be made first from the Pre-Tax Deferral Account and then from the ▇▇▇▇ Deferral Account.
Distribution of Excess Deferrals. 31 ARTICLE 6
Distribution of Excess Deferrals. Notwithstanding any other provision of the Plan, Excess Deferral Amounts and income attributable thereto shall be distributed no later than April 15 to Participants who claim such Allocable Excess Deferral Amounts for the preceding calendar year. "
Distribution of Excess Deferrals. Unless designated otherwise under AA §6A-5 of the Grandfathered 401(k) Plan Adoption Agreement or separate administrative procedures, if a Participant has both a Pre-Tax Salary Deferral Account and a ▇▇▇▇ Deferral Account, and the Plan is required to make a corrective distribution of Excess Deferrals to such Participant, the Participant may designate whether the Plan will make such corrective distribution of Excess Deferrals from the Pre-Tax Salary Deferral Account or the ▇▇▇▇ Deferral Account. Alternatively, the Employer may elect under AA §6A-5 of the Grandfathered 401(k) Plan Adoption Agreement (or under separate administrative procedures) that corrective distributions of Salary Deferrals to correct Excess Deferrals will be made pro rata from the Pre-Tax Salary Deferral Account and ▇▇▇▇ Deferral Account or first from the Pre-Tax Salary Deferral Account or first from the ▇▇▇▇ Deferral Account. Unless designated otherwise under separate administrative procedures, if a Participant is permitted to designate the extent to which a corrective distribution is made from the Pre-Tax Salary Deferral Account or the ▇▇▇▇ Deferral Account, and the Participant fails to designate the appropriate Account by the date the corrective distribution is made from the Plan, such corrective distribution may be withdrawn equally from both the Pre-Tax Salary Deferral Account and the ▇▇▇▇ Deferral Account, or the Employer may withdraw such amounts first from either the Pre-Tax Salary Deferral Account or the ▇▇▇▇ Deferral Account.