Reso 1997-0023 - Laserfiche WebLink

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, The Employer hereby elects to "pick up" the Mandatory/Required Participant Contribution. CJ Yes o No [Note to Employer: Neither an opinion letter issued by the Internal Revenue Service with respect to the Prototype Plan, nor a determination letter issued to an adopting Employer is a ruling by the Internal Revenue Service that Participant contributions that are picked up by the Employer are not includable in the Participant's gross income for federal income tax pur~ poses. The Employer may seek such a ruling. Picked up contributions are excludable from the Participant's gross income under section 414(h)(2) of the Internal Revenue Code of 1986 only if they meet the requirements of Rev. Rut. 81~35, 1981~1 C.B. 255. Those requirements are (1) that the Employer must specify that the contributions, although designated as employee contributions, are being paid by the Em~ ployer in lieu of contributions by the employee; and (2) the employee must not have the option of receiving the contributed amounts directly instead of having them paid by the Employer to the plan.] o Fixed Employer Match of Participant Contributions. The Employer shall contribute on behalf of each ParticipantNA % ofEarn~ ings for the Plan Year (subject to the limitations of Articles V and VI of the Plan) for each Plan Year that such Participant has contributed NA % of Earnings or $ NA. Under this option, there is a single, fixed rate of Em~ ployer contributions, but a Participant may decline to make the required Participant contributions in any Plan Year, in which case no Employer contri~ bution will be made on the Participant's behalf in that Plan Year. o Variable Employer Match Of Participant Contributions. The Employer shall contribute on behalf of each Participant an amount de~ termined as follows (subject to the limitations of Articles V and VI of the Plan): ~ % of the Participant contributions made by the Participant for the Plan Year (not including Participant contributions exceeding NA % of Earnings or $ NA); PLUS ~ % of the contributions made by the Participant for the Plan Year in excess of those included in the above paragraph (but not includ~ ing Participant contributions exceeding in the aggregate NA % of Earnings or $ NA ). Employer Contributions on behalf of a Participant for a Plan Year shall not exceed $ NA or _ % of Earnings, whichever is 0 more or o less. .1 MPP Adoption Agreement 12/23/94 001-94 .