31. Limitation on allocations

Statement of Requirement: Code § 415; Reg. §§ 1.415(a)-1 through 1.415(j)- 1; Prop. Reg. § 1.415(c)-2(g); Rev. Proc. 2017-41, sec. 5.06(2) & 6.03(11)R ev. Proc. 2023-37, 2023- 51 I.R.B. 1491, sec. 9.02 & 10.02(1)(a); Notice 2020-68, 2020-38 I.R.B. 567

(Note to reviewer: A defined contribution Pre-Approved Plan cannot incorporate by reference the Code § 415 limitations.)

(Note to reviewer: The following provisions must be included in the plan and cannot be incorporated by reference.)

Sample Plan Language:

Article _____ Limitation on Allocations

Section 1. If the participant does not participate in, and has never participated in, another qualified defined contribution plan (or defined benefit plan permitting employee contributions) maintained by the employer, or a welfare benefit fund, as defined in section 419(e) of the Code, maintained by the employer, or an individual medical account, as defined in section 415(l)(2) of the Code, maintained by the employer, or a simplified employee pension, as defined in section 408(k) of the Code, maintained by the employer, which provides an annual addition as defined in section 4.1, the amount of annual additions which may be credited to the participant's account for any limitation year will not exceed the lesser of the maximum permissible amount or any other limitation contained in this plan. If the employer contribution that would otherwise be contributed or allocated to the participant's account would cause the annual additions for

205 | D e f i n e d C o n t r i b u t i o n P l a n L R M P a c k a g e 0 1 / 2 0 2 4

the limitation year to exceed the maximum permissible amount, the amount contributed or allocated will be reduced so that the annual additions for the limitation year will equal the maximum permissible amount.