The Aggregate 401(k) Contributions of Highly Compensated Employees shall constitute Excess Contributions and shall be reduced, pursuant to Sections 4.8 and 4.9, to the extent that the Average Deferral Percentage of Highly Compensated Employees exceeds the greater of # 125 percent of the Average Deferral Percentage of Nonhighly Compensated Employees or # the lesser of # 200 percent of the Average Deferral Percentage of Nonhighly Compensated Employees or # the Average Deferral Percentage of Nonhighly Compensated Employees plus two percentage points.
The Aggregate 401(m) Contributions of Highly Compensated Employees shall constitute Excess Aggregate Contributions and shall be reduced, pursuant to Sections 5.5 and 5.6, to the extent that the Average Contribution Percentage of Highly Compensated Employees exceeds the greater of # 125 percent of the Average Contribution Percentage of Nonhighly Compensated Employees or # the lesser of # 200 percent of the Average Contribution Percentage of Nonhighly Compensated Employees or # the Average Contribution Percentage of Nonhighly Compensated Employees plus two percentage points.
With regard to each Highly Compensated Employee whose Actual Deferral Percentage is in excess of the maximum permitted Actual Deferral Percentage, a dollar amount of Excess Contributions shall then be determined by subtracting the product of the maximum permitted Actual Deferral Percentage and the Highly Compensated Employees [Section 414(s)] Compensation from the Highly Compensated Employees Aggregate 401(k) Contributions. The amounts shall then be aggregated to determine the total dollar amount of Excess Contributions.
The maximum Actual Deferral Percentage shall be determined by use of a leveling process, whereby the Aggregate 401(k) Contributions of the Highly Compensated Employee with the highest Actual Deferral Percentage are reduced to the extent required to # eliminate all Excess Contributions or # cause such Highly Compensated Employees Actual Deferral Percentage to equal the Actual Deferral Percentage of the Highly Compensated Employee with the next-highest Actual Deferral Percentage. Such leveling process shall be repeated until the average deferral percentage test is satisfied.
With regard to each Highly Compensated Employee whose Actual Contribution Percentage is in excess of the maximum permitted Actual Contribution Percentage, a dollar amount of Excess Aggregate Contributions shall then be determined by subtracting the product of the maximum permitted Actual Contribution Percentage and the Highly Compensated Employees [Section 414(s)] Compensation from the Highly Compensated Employees Aggregate 401(m) Contributions. The amounts shall then be aggregated to determine the total dollar amount of Excess Aggregate Contributions.
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