Limitation on Elective Deferrals Clause Samples
The Limitation on Elective Deferrals clause sets a maximum amount that employees can contribute to a retirement plan through salary deferrals in a given year. This clause typically references annual limits established by law, such as those set by the IRS for 401(k) or 403(b) plans, and may require the plan administrator to monitor contributions to ensure compliance. Its core function is to prevent employees from exceeding legal contribution limits, thereby avoiding tax penalties and ensuring the plan remains in compliance with applicable regulations.
Limitation on Elective Deferrals. No Participant shall be permitted to have Elective Deferrals made under this Plan, or any other qualified plan maintained by the Employer, during any taxable year, in excess of the dollar limitation contained in Section 402(g) of the Code in effect at the beginning of such taxable year.
Limitation on Elective Deferrals. (A) Maximum Amount of Elective Deferrals and Distribution of Excess Elective Deferrals
(i) No Participant shall be permitted to have Elective Deferrals made under this Plan, or any other Qualified Plan maintained by the Employer, during any Plan Year in excess of the dollar limitation contained in Code Section 402(g) in effect at the beginning of the Participant's taxable year.
(ii) Notwithstanding any other provision of the Plan, Excess Elective Deferrals made to this Plan or assigned to this Plan, plus any income and minus any loss allocable thereto, shall be distributed no later than April 15, 1988, and each April 15 thereafter, to Participants to whose accounts Excess Elective Deferrals were designated for the preceding Plan Year and who claim Excess Elective Deferrals for such taxable year. Excess Elective Deferrals shall be treated as Annual Additions.
Limitation on Elective Deferrals. (a) For each Plan Year, the Average Deferral Percentage of the group of Highly Compensated Participants for the Plan Year may not exceed the greater of (i) 1.25 times the Average Deferral Percentage of the group of Non-Highly Compensated Participants for the same Plan Year; or (ii) the lesser of 2 times the Average Deferral Percentage of all such Non-Highly Compensated Participants, or such Average Deferral Percentage plus 2 percentage points. For purposes of this Section 6.02, the "Average Deferral Percentage" of a specified group of Participants for a Plan Year shall be the average of the ratios (calculated separately for each Participant in such group) of (A) the amount of the Contributions actually paid over to the Trust on behalf of each Participant for each Plan Year to (B) the Participant's Compensation for the Plan Year. For purposes of this Section 6.02, "Compensation" shall have the same meaning as in Section 2.09(a); provided, however, that to the extent elected by the Employer in the Adoption Agreement "Compensation" shall exclude amounts paid for the period when the Participant was not eligible to make Elective Deferrals and/or shall include the amounts set forth in Section 2.09(b). For purposes of this Section 6.02, "Contributions" shall include both Elective Deferrals (including Excess Elective Deferrals of Highly Compensated Participants) and Qualified Nonelective Contributions, if any.
Limitation on Elective Deferrals. (a) For each Plan Year, the Average Deferral Percentage of the group of Highly Compensated Participants for the Plan Year may not exceed the greater of (i) 1.25 times the Average Deferral Percentage of the group of Non-Highly Compensated Participants for the same Plan Year; or (ii) the lesser of 2 times the Average Deferral Percentage of all such Non-Highly Compensated Participants, or such Average Deferral Percentage plus 2 percentage points.
Limitation on Elective Deferrals. Maximum Amount of Elective Deferrals and Distribution of Excess Elective Deferrals
Limitation on Elective Deferrals. (1) Notwithstanding the limitations determined under paragraph (a), above, Elective Deferrals under the Plan for any year shall in no event exceed the Maximum Elective Deferrals as defined in Section 402(g) of the Code.
(2) Any Participant who makes Elective Deferrals under this Plan and under a plan described in Section 457(a) of the Code in the same taxable year shall have a combined Elective Deferral limit applied which is the lesser of the limit under Section 402(g) of the Code or the applicable limit under Section 457(b)(2)(A), as indexed, or Section 457(b)(3) of the Code.
Limitation on Elective Deferrals. Except as otherwise provided in Article XVI of the Plan, the amount of Elective Deferrals made on behalf of Participants will be subject to the following limitations:
(a) Elective Deferrals made on behalf of Highly Compensated Participants for a Plan Year will not result in a Deferral Percentage for Highly Compensated Participants that exceeds both:
Limitation on Elective Deferrals. (1) In no event may the total Elective Deferrals for a Participant exceed the Section 402(g) Limitation in any one taxable year of the Participant, except to the extent permitted under Subsection (c) of this Section 3.1.
(2) The "Section 402(g) Limitation" is the amount designated in Code Section 402(g)(1), which is $11,000 for 2002, and which shall be adjusted for changes in the cost of living as provided by the Secretary of the Treasury.
(3) If the amount of Elective Deferrals contributed on behalf of a Participant to the Plan or to any other plan exceeds the Section 402(g) Limitation in any one taxable year then, not later than the March 1 following such taxable year, the Participant may notify the Plan Administrator that a portion of the Participant's Deferral Amounts consists of excess Elective Deferrals. If such notification is made, the Trustee shall distribute to the Participant the amount of such excess Elective Deferrals, as adjusted to reflect income, gain, or loss attributable to such amount through the end of the Plan Year on or before the following April 15th.
(4) The amount to be distributed under subparagraph (1) above shall be reduced by any "Excess Deferral Amounts," as defined in Appendix C hereto, previously distributed or recharacterized with respect to the Participant for the Plan Year beginning with or within that taxable year.
(5) The payment of the excess Elective Deferrals, as adjusted and reduced, from the Plan shall be made to the Participant without regard to any other provision in the Plan.
(6) If a Participant's total Elective Deferrals under the Plan and other plans of the Plan Sponsor and its Affiliates exceed the Section 402(g) Limitation in any taxable year, the Participant shall be deemed to have designated for distribution under the Plan the lesser of (A) the amount of such excess Elective Deferrals or (B) the amount of Elective Deferrals under this Plan, as adjusted and reduced pursuant to subparagraphs (1) and (2) above.
Limitation on Elective Deferrals. No Participant shall be permitted to have Elective Deferrals made under this Plan, or any other qualified plan maintained by the Employer, during any taxable year, in excess of the dollar limitation contained in section 402(g) of the Code in effect at the beginning of such taxable year. Notwithstanding any other provisions of the Plan, the Employer may distribute to the Participant, not later than April 15 following the calendar year to which the deferral is attributable, any deferral in excess of the aforesaid limit together with any income (or minus any loss) allocable thereto. A Participant is deemed to notify the Plan Administrator of any Excess Elective Deferrals that arise by taking into account only those Elective Deferrals made to this Plan and any other plans of this 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. The Employer may also distribute to Participant any deferrals, together with any income allocable thereto which the Participant has advised the Employer (in writing by March 1) represent excess deferrals because of amounts deferred by the Participant during the preceding calendar year under any other plans or arrangements described in section 401(k), 408(k) or 403(b) of the Code.
Limitation on Elective Deferrals. In no event may a Participant’s Elective Deferrals made to the Plan, any other qualified plan, or under any arrangement described in Sections 402(h)(1)(B), 403(b), 457 or 501(c)(18) of the Code during any calendar year exceed the dollar limitation contained in Section 402(g) of the Code. Any amount which exceeds such limit shall be deemed an “Excess Elective Deferral. If a Participant makes Elective Deferrals to arrangements other than this Plan, and such Participant has made Excess Elective Deferrals for a calendar year, such a Participant must notify the Committee, in writing on or before March 1st of the following calendar year, the amount of Elective Deferrals to this Plan which he designates as Excess Elective Deferrals.