Common use of Retention of Excess Amounts Clause in Contracts

Retention of Excess Amounts. Under VCT and Audit CAP, Excess Amounts will be treated as corrected (even though the Excess Amounts are retained in the 403(b) Plan) if the following requirements are satisfied. Excess Amounts arising from a □ 415 failure, adjusted for earnings through the date of correction, must reduce affected participants□ applicable □ 415 limit for the year following the year of correction (or for the year of correction if the Plan Sponsor so chooses), and subsequent years, until the excess is eliminated. Excess Amounts (whether arising from a □ 415 failure or a □ 403(b)(2) failure), adjusted for earnings through the date of correction, must also reduce participants□ exclusion allowances by being treated as amounts previously excludable under □ 403(b)(2)(A)(ii) beginning with the year following the year of correction (or the year of correction if the Plan Sponsor so chooses). If this correction method is used, it must generally be used for all participants who have Excess Amounts.