LIMITATION ON ALLOCATIONS Sample Clauses
The "Limitation on Allocations" clause restricts the way profits, losses, or other tax-related items can be distributed among parties in a partnership or similar arrangement. Typically, this clause sets boundaries to ensure that allocations comply with tax laws, such as those imposed by the Internal Revenue Code, and may prevent allocations that would result in adverse tax consequences or violate regulatory requirements. Its core function is to ensure that allocations are made in a manner that is both legally compliant and equitable, thereby reducing the risk of disputes or penalties related to improper allocation of income or losses.
LIMITATION ON ALLOCATIONS. If the Employer maintains or has ever maintained another qualified plan (other than the Sponsor's paired defined contribution plan number 01003, 01004, or 01006 or the Sponsor's paired defined benefit plan number 02001), in which any Participant in this Plan is (or was) a Participant or could possibly become a Participant, the adopting Employer must complete this Section. The Employer must also complete this Section if it maintains a welfare benefit fund, as defined in Section 419(e) of the Code, or an individual medical account, as defined in Section 415(l)(2) of the Code, under which amounts are treated as Annual Additions with respect to any Participant in the Plan. (If the Employer maintains only paired plans of the Sponsor this Section should not be completed.)
(a) If the Participant is covered under another qualified defined contribution plan maintained by the Employer, other than a Master or Prototype Plan, Annual Additions for any Limitation Year shall be limited to comply with Section 415(c) of the Code:
LIMITATION ON ALLOCATIONS. If the adopting Employer maintains or has ever maintained another qualified plan in which any Participant in this Plan is (or was) a Participant or could possibly become a Participant, the adopting Employer must complete this Section. The Employer must also complete this Section if it maintains a welfare benefit fund, as defined in Section 419(e) of the Code, or an individual medical account, as defined in Section 415(l)(2) of the Code, under which amounts are treated as Annual Additions with respect to any Participant in the Plan.
(a) If the Participant is covered under another qualified defined contribution plan maintained by the Employer, other than a Master or Prototype Plan, Annual Additions for any Limitation Year shall be limited to comply with Section 415(c) of the Code:
LIMITATION ON ALLOCATIONS. If the Participant does not participate in, and has never participated in another qualified plan or a welfare benefit fund, as defined in section 419(e) of the Code, maintained by the Employer, or an individual medical benefit account, as defined in section 415(l)
LIMITATION ON ALLOCATIONS. A. If the Participant does not participate in, and has never participated in another qualified plan maintained by the Employer or a welfare benefit fund, as defined in Section 419(e) of the Code maintained by the Employer, or an individual medical account, as defined in Section 415(l)(2) of the Code, or a simplified employee pension plan, as defined in Section 408(k) of the Code, maintained by the Employer, which provides an annual addition as defined in Section 3.08(E)(1), the following rules shall apply:
1. The amount of annual additions which may be credited to the Participant's Individual Account for any limitation year will not exceed the lesser of the maximum permissible amount or any other limitation contained in this Plan. If the Employer Contribution that would otherwise be contributed or allocated to the Participant's Individual Account would cause the annual additions for the limitation year to exceed the maximum permissible amount, the amount contributed or allocated will be reduced so that the annual additions for the limitation year will equal the maximum permissible amount.
2. Prior to determining the Participant's actual Compensation for the limitation year, the Employer may determine the maximum permissible amount for a Participant on the basis of a reasonable estimation of the Participant's Compensation for the limitation year, uniformly determined for all Participants similarly situated.
3. As soon as is administratively feasible after the end of the limitation year, the maximum permissible amount for the limitation year will be determined on the basis of the Participant's actual Compensation for the limitation year.
4. If pursuant to Section 3.05(A)(3) or as a result of the allocation of Forfeitures there is an excess amount, the excess will be disposed of as follows:
a. Any Nondeductible Employee Contributions, to the extent they would reduce the excess amount, will be returned to the Participant;
b. If after the application of paragraph (a) an excess amount still exists, and the Participant is covered by the Plan at the end of the limitation year, the excess amount in the Participant's Individual Account will be used to reduce Employer Contributions (including any allocation of Forfeitures) for such Participant in the next limitation year, and each succeeding limitation year if necessary;
c. If after the application of paragraph (b) an excess amount still exists, and the Participant is not covered by the Plan at the end of a limitatio...
LIMITATION ON ALLOCATIONS. If the Employer maintains or ever maintained another qualified plan in which any Participant in this Plan is (or was) a participant or could possibly become a participant, the Employer hereby agrees to limit contributions to all such plans as provided herein, if necessary in order to avoid excess contributions (as described in Section
LIMITATION ON ALLOCATIONS. If the Employer maintains or has ever maintained another qualified defined contribution plan other than a ▇▇▇▇▇▇▇ Profit Sharing Plan (Plan number 001 or 003) or a plan amended into the Prototype Plan in which any Participant in this Plan is or was a participant or could possible become a participant, the provisions of Section 5.03 of the Prototype Plan will apply. If the Employer maintains or has ever maintained a qualified defined benefit plan in which any Participant in this Plan is or was a participant or could possibly become a participant, the provisions of Section 5.04 of the Prototype Plan will apply.
LIMITATION ON ALLOCATIONS. 12 SECTION FOUR INDIVIDUAL ACCOUNTS OF PARTICIPANTS AND VALUATION ............ 16 4.
LIMITATION ON ALLOCATIONS. If the Employer maintains or ever maintained another qualified plan in which any Participant in this Plan is (or was) a participant or could possibly become a participant, the Employer hereby agrees to limit contributions to all such plans as provided herein, if necessary in order to avoid excess contributions (as described in Section 5.02 of the Plan).
1. If the Participant is covered under another qualified defined contribution plan maintained by the Employer, the provisions of Section 5.02(a) through (e) of the Plan will apply unless another method has been indicated below. Other Method. (Provide the method under which the plans will limit total Annual Additions to the Maximum Permissible Amount, and will properly reduce any excess amounts, in a manner that precludes Employer discretion.)
2. The Limitation Year is the following 12 consecutive month period:
3. Unless the Employer elects a delayed effective date below, Article 5 of the Plan will apply to limitations years beginning on or after July 1, 2007.
LIMITATION ON ALLOCATIONS. Any Net Losses or items of loss or deduction allocated to a Limited Partner pursuant to this Article III shall not exceed the maximum amount of such items that can be allocated without causing the Partner to have a negative Capital Account balance, after giving effect to the following adjustments: (a) debit to such Capital Account balance the items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6), and (b) credit to such Capital Account balance the sum of (i) the amount that the Partner is obligated to restore to the capital of the Partnership, and (ii) the amount that the Partner is deemed to restore pursuant to Regulations Section 1.704- 1(b)(2)(ii)(c)(1) and (2). The Partnership shall allocate all Net Losses or items of loss or deduction in excess of the limitations set forth in this Section 3.03 first to any Limited Partners to whom the limitation in the preceding sentence does not apply, in proportion to their respective Allocation Percentages. Any Net Losses that the Partnership cannot allocate to any Limited Partner as a result of the limitation set forth in the first sentence of this Section 3.03 shall be allocated to the General Partner.
LIMITATION ON ALLOCATIONS. More Than One Plan If you maintain or ever maintained another qualified plan (other than a paired standardized money purchase pension plan using Basic Plan Document No. 03) in which any Participant in this Plan is (or was) a Participant or could become a Participant, you must complete this section. You must also complete this section if you maintain a welfare benefit fund, as defined in Section 419(e) of the Code, or an individual medical account, as defined in Section 415(l)(2) of the Code, under which amounts are treated as annual additions with respect to any Participant in this Plan. #705(12/90)L90 1▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇., ▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ Part A. If the Participant is covered under another qualified defined contribution plan maintained by the Employer, other than a master or prototype plan:
1. [ ] The provisions of Section 3.05(B)(1) through 3.05(B)(6) of the Plan will apply as if the other plan were a master or prototype plan.
2. [ ] Other method. (Provide the method under which the plans will limit total annual additions to the maximum permissible amount, and will properly reduce any excess amounts, in a manner that precludes Employer discretion.) ________________ ____________________________________________________________