36. Separate account - nondeductible employee contributions

Statement of Requirement: Code § 411(c)(2).

Sample Plan Language: (The plan may use either provision #1 or #2.)

Provision #1: A separate account will be maintained for the nondeductible employee contributions of each participant.

Provision #2: The account balance derived from nondeductible employee contributions is the employee's total account balance multiplied by a fraction, the numerator of which is the total amount of nondeductible employee contributions less withdrawals and the denominator of which is the sum of the numerator and the total contributions made by the employer on behalf of the employee less withdrawals. For this purpose, contributions include contributed amounts used to provide ancillary benefits and withdrawals include only amounts distributed to the employee and do not reflect the cost of any death benefits.