Timing of Salary Reduction Elections Clause Samples
Timing of Salary Reduction Elections. For any calendar year, an eligible employee may make or modify a salary reduction election during the 60-day period immediately preceding January 1 of that year. However, for the year in which the employee becomes eligible to make salary reduction contributions, the period during which the employee may make or modify the election is a 60-day period that includes either the date the employee becomes eligible or the day before. You can extend the 60-day election periods to provide additional opportunities for eligible employees to make or modify salary reduction elections using the blank in Article II, item 2b. For example, you can provide that eligible employees may make new salary reduction elections or modify prior elections for any calendar quarter during the 30 days before that quarter. You may use the Model Salary Reduction Agreement on page 3 to enable eligible employees to make or modify salary reduction elections. Employees must be permitted to terminate their salary reduction elections at any time. They may resume salary reduction contributions for the year if permitted under Article II, item 2b. However, by checking the box in Article II, item 2d, you may prohibit an employee who terminates a salary reduction election outside the normal election cycle from resuming salary reduction contributions during the remainder of the calendar year.
Timing of Salary Reduction Elections a For a calendar year, an eligible employee may make or modify a salary reduction election during the 60-day period immediately preceding January 1 of that year. However, for the year in which the employee becomes eligible to make salary reduction contributions, the period during which the employee may make or modify the election is a 60-day period that includes either the date the employee becomes eligible or the day before. c No salary reduction election may apply to compensation that an employee received, or had a right to immediately receive, before execution of the salary reduction election. d An employee may terminate a salary reduction election at any time during the calendar year. If this box is checked, an employee who terminates a salary reduction election not in accordance with 2b may not resume salary reduction contributions during the calendar year.
Timing of Salary Reduction Elections a For a calendar year, an eligible employee may make or modify a salary reduction election during the 60-day period immediately preceding January 1 of that year. However, of for the year in which the employee becomes eligible to make salary reduction contributions, the period during which the employee may make or modify the election is a 60-day period that includes either the date the employee becomes eligible or the day before. b In addition to the election in 2a, eligible employees may make salary reduction elections or modify prior elections _______________ (If the Employer chooses this option, insert a period or periods (e.g. semi- annually, quarterly, monthly, or daily) that will apply uniformly to all eligible employees.) c No salary reduction election may apply to compensation that an employee received, or had a right to immediately receive, before execution of the salary reduction election.
Timing of Salary Reduction Elections a For a calendar year, an eligible employee may make or modify a salary reduction election during the 60-day period immediately preceding January 1 of that year. However, for the year in which the employee becomes eligible to make salary reduction contributions, the period during which the employee may make or modify the election is a 60-day period that includes either the date the employee becomes eligible or the day before. b In addition to the election periods in 2a, eligible employees may make salary reduction elections or modify prior elections c No salary reduction election may apply to compensation that an employee received, or had a right to immediately receive, before execution of the salary reduction election. d An employee may terminate a salary reduction election at any time during the calendar year. If this box is checked, an employee who terminates a salary reduction election not in accordance with 2b may not resume salary reduction contributions during the calendar year.
Timing of Salary Reduction Elections. For a calendar year, you may make or modify a salary reduction election during the 60-day period immediately preceding January 1 of that year. However, for the year in which you become eligible to make salary reduction contributions, the period during which you may make or modify the election is a 60-day period that includes either the date you become eligible or the day before. For example, if your employer starts its SIMPLE IRA plan effective July 1 of a year and you become eligible on that day, your 60-day salary reduction election period must include either June 30 or July 1. In this example, the earliest possible 60-day period would be May 2 to June 30, and the latest possible 60-day period would be July 1 to August 29. Your employer may enlarge the 60-day election period or provide additional opportunities during the year for you to make, cancel, or change your salary reduction election. Refer to Article II, Item 2b of the attached Form 5304-SIMPLE to determine any additional modification periods available to you. You may terminate your salary reduction election at any time. However, if you terminate your election outside of the normal election cycle, your employer has the option to prohibit you from resuming salary reduction elections during the remainder of the calendar year. Consult Article II, item 2d of the attached Form 5304-SIMPLE to determine if your employer has chosen this option.