V. Distribution of excess elective deferrals

Statement of Requirement: Code §§ 401(a)(30), 402(g) and 402A; Reg. § 1.402(g)-1

(Note to reviewer: A mechanism must be provided by which a participant may notify or be deemed to notify the Plan administrator of Excess Elective Deferrals and upon such notice, but no later than April 15 ^th of the year following the year in which the deferrals were made, the Excess Elective Deferrals and any earnings thereon will be distributed. Deemed notification occurs if Excess Elective Deferrals arise solely from Elective Deferrals made under this Plan or any other plan, contract or arrangement of the Employer.)

Sample Plan Language:

A participant may assign to this Plan any Excess Elective Deferrals made during a taxable year of the participant by notifying the Plan administrator on or before the date specified in the adoption agreement of the amount of the Excess Elective Deferrals to be assigned to the Plan. 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 plan, contract or arrangement of the Employer.

Notwithstanding any other provision of the Plan, Excess Elective Deferrals, plus any income and minus any loss allocable thereto, shall be distributed no later than April 15 to any participant to whose account Excess Elective Deferrals were assigned for the preceding year and who claims

7 | Cash or Deferred Arrangement (CODA) LRM Package 01-2024

Excess Elective Deferrals for such taxable year or calendar year. Distribution of Excess Elective Deferrals for a year, if necessary, shall be made from the participant's Pre-tax Elective Deferral account to the extent Pre-tax Elective Deferrals were made for the year, unless the participant specifies otherwise.

(Note to reviewer: The Plan may provide that distribution of Excess Elective Deferrals will consist of a participant's Pre-tax Elective Deferrals, Roth Elective Deferrals or a combination of both, to the extent such type of Elective Deferrals was made for the year. See Code § 402A(e)(9).)

Determination of income or loss: Excess Elective Deferrals shall be adjusted for any income or loss. Income or loss allocable to Excess Elective Deferrals is the income or loss allocable to the participant's Elective Deferral account for the taxable year multiplied by a fraction, the numerator of which is such participant's Excess Elective Deferrals for the year and the denominator is the participant's account balance attributable to Elective Deferrals without regard to any income or loss occurring during such taxable year.

(Note to reviewer: A plan may use any reasonable method for computing the income or loss allocable to Excess Elective Deferrals, provided such method is used consistently for all participants and for all corrective distributions under the plan for the plan year, and is used by the plan for allocating income or loss to participants' accounts. Income or loss allocable to the period between the end of the taxable year and the date of distribution (the “gap-period”) is excluded from any distribution of Excess Elective Deferrals. See Code § 402(g)(2)(A)(ii))

Definitions:

1. "Elective Deferrals" shall mean any employer contributions made to the Plan at the election of the participant in lieu of cash compensation. With respect to any taxable year, a participant's Elective Deferrals are the sum of all employer contributions made on behalf of such participant pursuant to an election to defer under any qualified cash or deferred arrangement ("CODA") described in Code section 401(k), any salary reduction simplified employee pension described in Code section 408(k)(6), any SIMPLE IRA plan described in Code section 408(p) and any plan described under Code section 501(c)(18), and any employer contributions made on behalf of a participant for the purchase of an annuity contract under Code section 403(b) pursuant to a salary reduction agreement. The term "Elective Deferrals" includes Pre-tax Elective Deferrals and Roth Elective Deferrals. Pre-tax Elective Deferrals are a participant's Elective Deferrals that are not includible in the participant's gross income at the time deferred. Elective Deferrals shall not include any deferrals properly distributed as excess annual additions.

2. "Roth Elective Deferrals" are a participant's Elective Deferrals that are includible in the participant's gross income at the time deferred and have been irrevocably designated as Roth Elective Deferrals by the participant in his or her deferral election.

8 | Cash or Deferred Arrangement (CODA) LRM Package 01-2024

3. "Excess Elective Deferrals" shall mean those Elective Deferrals of a participant that either (1) are made during the participant's taxable year and exceed the dollar limitation under Code Code section 402(g) (including, if applicable, the dollar limitation on Catch-up Contributions defined in Code section 414(v)) for such year; or (2) are made during a calendar year and exceed the dollar limitation under section 402(g) (including, if applicable, the dollar limitation on Catch-up Contributions defined in section 414(v)) for the participant's taxable year beginning in such calendar year, counting only Elective Deferrals made under this Plan and any other plan, contract or arrangement maintained by the Employer.

Sample Adoption Agreement Language:

Participants who claim Excess Elective Deferrals for the preceding taxable year must submit their claims in writing to the Plan administrator by [ ] [SPECIFY A DATE NOT LATER THAN APRIL 15].