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MILLINGTON SAVINGS BANK SAVINGS PLAN
EGTRRA
AMENDMENT TO THE
MILLINGTON SAVINGS BANK SAVINGS PLAN
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ADOPTION AGREEMENT #005
NONSTANDARDIZED 401(k) PROFIT SHARING PLAN
The undersigned, Millington Savings Bank ("Employer"), by executing
this Adoption Agreement, elects to establish a retirement plan and trust
("Plan") under the Kidder Benefits Consultants, Inc. Defined Contribution
Prototype Plan and Trust (basic plan document # 01 ). The Employer, subject to
the Employer's Adoption Agreement elections, adopts fully the Prototype Plan and
Trust provisions. This Adoption Agreement, the basic plan document and any
attached appendices or addenda, constitute the Employer's entire plan and trust
document. All section references within this Adoption Agreement are Adoption
Agreement section references unless the Adoption Agreement or the context
indicate otherwise. All article references are basic plan document and Adoption
Agreement references as applicable. Numbers in parenthesis which follow headings
are references to basic plan document sections. The Employer makes the following
elections granted under the corresponding provisions of the basic plan document.
ARTICLE I
DEFINITIONS
1. PLAN (1.21). The name of the Plan as adopted by the Employer is Millington
Savings Bank Savings Plan .
2. TRUSTEE (1.33). The Trustee executing this Adoption Agreement is: (Choose
one of (a), (b) or (c))
[X] (a) A discretionary Trustee. See Plan Section 10.03[A].
[ ] (b) A nondiscretionary Trustee. See Plan Section 10.03[B].
[ ] (c) A Trustee under a separate trust agreement. See Plan Section 10.03[G].
3. EMPLOYEE (1.11). The following Employees are not eligible to participate in
the Plan:(Choose (a) or one or more of (b) through (g) as applicable)
[ ] (a) No exclusions.
[X] (b) Collective bargaining Employees.
[ ] (c) Nonresident aliens.
[ ] (d) Leased Employees.
[X] (e) Reclassified Employees.
[ ] (f) Classifications: ________ .
[ ] (g) Exclusions by types of contributions. The following classification(s)
of Employees are not eligible for the specified contributions:
Employee classification: ________ .
Contribution type: ________ .
4. COMPENSATION (1.07). The Employer makes the following election(s) regarding
the definition of Compensation for purposes of the contribution allocation
formula under Article III: (Choose one of (a), (b) or (c))
[ ] (a) W-2 wages increased by Elective Contributions.
[X] (b) Code ss.3401(a) federal income tax withholding wages increased by
Elective Contributions.
[ ] (c) 415 compensation.
Copyright 2001 Kidder Benefits Consultants, Inc. 12/06
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[Note: Each of the Compensation definitions in (a), (b) and (c) includes
Elective Contributions. See Plan Section 1.07(D). To exclude Elective
Contributions, the Employer must elect (g).]
Compensation taken into account. For the Plan Year in which an Employee first
becomes a Participant, the Plan Administrator will determine the allocation of
Employer contributions (excluding deferral contributions) by taking into
account: (Choose one of (d) or (e))
[X] (d) Plan Year. The Employee's Compensation for the entire Plan Year.
[ ] (e) Compensation while a Participant. The Employee's Compensation only for
the portion of the Plan Year in which the Employee actually is a
Participant.
Modifications to Compensation definition. The Employer elects to modify the
Compensation definition elected in (a), (b) or (c) as follows. (Choose one or
more of (f) through (n) as applicable. If the Employer elects to allocate its
nonelective contribution under Plan Section 3.04 using permitted disparity, (i),
(j), (k) and (l) do not apply):
[ ] (f) Fringe benefits. The Plan excludes all reimbursements or other expense
allowances, fringe benefits (cash and noncash), moving expenses, deferred
compensation and welfare benefits.
[ ] (g) Elective Contributions. The Plan excludes a Participant's Elective
Contributions. See Plan Section 1.07(D).
[ ] (h) Exclusion. The Plan excludes Compensation in excess of: ________ .
[ ] (i) Bonuses. The Plan excludes bonuses.
[ ] (j) Overtime. The Plan excludes overtime.
[ ] (k) Commissions. The Plan excludes commissions.
[ ] (l) Nonelective contributions. The following modifications apply to the
definition of Compensation for nonelective contributions: ________ .
[ ] (m) Deferral contributions. The following modifications apply to the
definition of Compensation for deferral contributions: ________ .
[ ] (n) Matching contributions. The following modifications apply to the
definition of Compensation for matching contributions: ________ .
5. PLAN YEAR/LIMITATION YEAR (1.24). Plan Year and Limitation Year mean the
12-consecutive month period (except for a short Plan Year) ending every:
(Choose (a) or (b). Choose (c) if applicable)
[X] (a) December 31.
[ ] (b) Other: ________ .
[ ] (c) Short Plan Year: commencing on: and ending on: ________ .
6. EFFECTIVE DATE (1.10). The Employer's adoption of the Plan is a: (Choose
one of (a) or (b))
[ ] (a) New Plan. The Effective Date of the Plan is: ________ .
[X] (b) Restated Plan. The restated Effective Date is: November 1, 2006 .
This Plan is an amendment and restatement of an existing retirement plan(s)
originally established effective as of: January 1, 1997 .
7. HOUR OF SERVICE/ELAPSED TIME METHOD (1.15). The crediting method for Hours
of Service is: (Choose one or more of (a) through (d) as applicable)
[X] (a) Actual Method. See Plan Section 1.15(B).
[ ] (b) Equivalency Method. The Equivalency Method is: ________ . [Note: Insert
"daily," "weekly," "semi-monthly payroll periods" or "monthly."] See Plan
Section 1.15(C).
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[ ] (c) Combination Method. In lieu of the Equivalency Method specified in (b),
the Actual Method applies for purposes of: .
[ ] (d) Elapsed Time Method. In lieu of crediting Hours of Service, the Elapsed
Time Method applies for purposes of crediting Service for: (Choose one
or more of (1), (2) or (3) as applicable)
[ ] (1) Eligibility under Article II.
[ ] (2) Vesting under Article V.
[ ] (3) Contribution allocations under Article III.
8. PREDECESSOR EMPLOYER SERVICE (1.30). In addition to the predecessor service
the Plan must credit by reason of Section 1.30 of the Plan, the Plan
credits as Service under this Plan, service with the following predecessor
employer(s): N/A .
[Note: If the Plan does not credit any additional predecessor service under this
Section 1.30, insert "N/A" in the blank line. The Employer also may elect to
credit predecessor service with specified Participating Employers only. See the
Participation Agreement.] Service with the designated predecessor employer(s)
applies: (Choose one or more of (a) through (d) as applicable)
[ ] (a) Eligibility. For eligibility under Article II. See Plan Section 1.30
for time of Plan entry.
[ ] (b) Vesting. For vesting under Article V.
[ ] (c) Contribution allocation. For contribution allocations under Article III.
[ ] (d) Exceptions. Except for the following Service: ________ .
ARTICLE II
ELIGIBILITY REQUIREMENTS
9. ELIGIBILITY (2.01).
Eligibility conditions. To become a Participant in the Plan, an Employee must
satisfy the following eligibility conditions: (Choose one or more of (a)
through (e) as applicable) [Note: If the Employer does not elect (c), the
Employer's elections under (a) and (b) apply to all types of contributions.
The Employer as to deferral contributions may not elect (b)(2) and may not elect
more than 12 months in (b)(4) and (b)(5).]
[X] (a) Age. Attainment of age 21 (not to exceed age 21).
[X] (b) Service. Service requirement. (Choose one of (1) through (5))
[X] (1) One Year of Service.
[ ] (2) Two Years of Service, without an intervening Break in Service. See
Plan Section 2.03(A).
[ ] (3) One Hour of Service (immediate completion of Service requirement).
The Employee satisfies the Service requirement on his/her Employment
Commencement Date.
[ ] (4) months (not exceeding 24).
[ ] (5) An Employee must complete Hours of Service within the time period
following the Employee's Employment Commencement Date. If an Employee
does not complete the stated Hours of Service during the specified
time period (if any), the Employee is subject to the One Year of
Service requirement. [Note: The number of hours may not exceed 1,000
and the time period may not exceed 24 months. If the Plan does not
require the Employee to satisfy the Hours of Service requirement
within a specified time period, insert "N/A" in the second blank
line.]
[ ] (c) Alternative 401(k)/401(m) eligibility conditions. In lieu of the
elections in (a) and (b), the Employer elects the following eligibility
conditions for the following types of contributions: (Choose (1) or (2) or
both if the Employer wishes to impose less restrictive eligibility
conditions for deferral/Employee contributions or for matching
contributions)
(1) [ ] Deferral/Employee contributions: (Choose one of a. through d.
Choose e. if applicable)
a. [ ] One Year of Service
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b. [ ] One Hour of Service (immediate completion of Service
requirement)
c. [ ] months (not exceeding 12)
d. [ ] An Employee must complete Hours of Service within the time
period following an Employee's Employment Commencement Date. If
an Employee does not complete the stated Hours of Service during
the specified time period (if any), the Employee is subject to
the One Year of Service requirement. [Note: The number of hours
may not exceed 1,000 and the time period may not exceed 12
months. If the Plan does not require the Employee to satisfy the
Hours of Service requirement within a specified time period,
insert "N/A" in the second blank line.]
e. [ ] Age (not exceeding age 21)
(2) [ ] Matching contributions: (Choose one of f. through i. Choose
j. if applicable)
f. [ ] One Year of Service
g. [ ] One Hour of Service (immediate completion of Service
requirement)
h. [ ] months (not exceeding 24)
i. [ ] An Employee must complete Hours of Service within the time
period following an Employee's Employment Commencement Date. If
an Employee does not complete the stated Hours of Service during
the specified time period (if any), the Employee is subject to
the One Year of Service requirement. [Note: The number of hours
may not exceed 1,000 and the time period may not exceed 24
months. If the Plan does not require the Employee to satisfy the
Hours of Service requirement within a specified time period,
insert "N/A" in the second blank line.]
j. [ ] Age (not exceeding age 21)
[ ] (d) Service requirements: ________ . [Note: Any Service requirement the
Employer elects in (d) must be available under other Adoption Agreement
elections or a combination thereof.]
[ ] (e) Dual eligibility. The eligibility conditions of this Section 2.01 apply
solely to an Employee employed by the Employer after . If the Employee was
employed by the Employer by the specified date, the Employee will become a
Participant on the latest of: (i) the Effective Date; (ii) the restated
Effective Date; (iii) the Employee's Employment Commencement Date; or (iv)
on the date the Employee attains age (not exceeding age 21).
Plan Entry Date. "Plan Entry Date" means the Effective Date and: (Choose one of
(f) through (j). Choose (k) if applicable) [Note: If the Employer does not elect
(k), the elections under (f) through (j) apply to all types of contributions.
The Employer must elect at least one Entry Date per Plan Year.]
[ ] (f) Semi-annual Entry Dates. The first day of the Plan Year and the first
day of the seventh month of the Plan Year.
[ ] (g) The first day of the Plan Year.
[ ] (h) Employment Commencement Date (immediate eligibility).
[X] (i) The first day of each: Plan Year quarter (e.g., "Plan Year quarter").
[ ] (j) The following Plan Entry Dates: ________ .
[ ] (k) Alternative 401(k)/401(m) Plan Entry Date(s). For the alternative
401(k)/401(m) eligibility conditions under (c), Plan Entry Date means:
(Choose (1) or (2) or both as applicable)
(1) [ ] Deferral/Employee contributions (2) [ ] Matching contributions
(Choose one of a. through d.) (Choose one of e. through h.)
a. [ ] Semi-annual Entry Dates e. [ ] Semi-annual Entry Dates
b. [ ] The first day of the Plan Year f. [ ] The first day of
the Plan Year g. [ ] Employment Commencement
c. [ ] Employment Commencement Date Date (immediate
(immediate eligibility) eligibility)
d. [ ] The first day of each: h. [ ] The first day of each:
Time of participation. An Employee will become a Participant, unless excluded
under Section 1.11, on the Plan Entry Date (if employed on that date): (Choose
one of (l), (m) or (n). Choose (o) if applicable): [Note: If the Employer does
not elect (o), the election under (l), (m) or (n) applies to all types of
contributions.]
[X] (l) Immediately following or coincident with
[ ] (m) Immediately preceding or coincident with
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[ ] (n) Nearest
[ ] (o) Alternative 401(k)/401(m) election(s): (Choose (1) or (2) or both as
applicable)
(1) [ ] Deferral contributions (2) [ ] Matching contributions
(Choose one of b., c. or d.)
a. [ ] Immediately following b. [ ] Immediately following
or coincident with or coincident with
c. [ ] Immediately preceding
or coincident with
d. [ ] Nearest
the date the Employee completes the eligibility conditions described in this
Section 2.01. [Note: Unless otherwise excluded under Section 1.11, an Employee
must become a Participant by the earlier of: (1) the first day of the Plan Year
beginning after the date the Employee completes the age and service requirements
of Code ss.410(a); or (2) 6 months after the date the Employee completes those
requirements.]
10. YEAR OF SERVICE - ELIGIBILITY (2.02). (Choose (a) and (b) as applicable):
[Note: If the Employer does not elect a Year of Service condition or elects
the Elapsed Time Method, the Employer should not complete (a) or (b).]
[X] (a) Year of Service. An Employee must complete 1000 Hour(s) of Service
during an eligibility computation period to receive credit for a Year of
Service under Article II: [Note: The number may not exceed 1,000. If left
blank, the requirement is 1,000.]
[X] (b) Eligibility computation period. After the initial eligibility
computation period described in Plan Section 2.02, the Plan measures the
eligibility computation period as: (Choose one of (1) or (2))
[X] (1) The Plan Year beginning with the Plan Year which includes the
first anniversary of the Employee's Employment Commencement Date.
[ ] (2) The 12-consecutive month period beginning with each anniversary of
the Employee's Employment Commencement Date.
11. PARTICIPATION - BREAK IN SERVICE (2.03). The one year hold-out rule
described in Plan Section 2.03(B): (Choose one of (a), (b) or (c))
[X] (a) Not applicable. Does not apply to the Plan.
[ ] (b) Applicable. Applies to the Plan and to all Participants.
[ ] (c) Limited application. Applies to the Plan, but only to a Participant who
has incurred a Separation from Service.
12. ELECTION NOT TO PARTICIPATE (2.06). The Plan: (Choose one of (a) or (b))
[X] (a) Election not permitted. Does not permit an eligible Employee to elect
not to participate.
[ ] (b) Irrevocable election. Permits an Employee to elect not to participate
if the Employee makes a one-time irrevocable election prior to the
Employee's Plan Entry Date.
ARTICLE III
EMPLOYER CONTRIBUTIONS, DEFERRAL CONTRIBUTIONS AND FORFEITURES
13. AMOUNT AND TYPE (3.01). The amount and type(s) of the Employer's
contribution to the Trust for a Plan Year or other specified period will
equal: (Choose one or more of (a) through (f) as applicable)
[X] (a) Deferral contributions (401(k) arrangement). The dollar or percentage
amount by which each Participant has elected to reduce his/her
Compensation, as provided in the Participant's salary reduction agreement
and in accordance with Section 3.02.
[X] (b) Matching contributions (other than safe harbor matching contributions
under Section 3.01(d)). The matching contributions made in accordance with
Section 3.03.
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[X] (c) Nonelective contributions (profit sharing). The following nonelective
contribution (Choose (1) or (2) or both as applicable): [Note: The Employer
may designate as a qualified nonelective contribution, all or any portion
of its nonelective contribution. See Plan Section 3.04(F).]
[X] (1) Discretionary. An amount the Employer in its sole discretion may
determine.
[ ] (2) Fixed. The following amount:
[ ] (d) 401(k) safe harbor contributions. The following 401(k) safe harbor
contributions described in Plan Section 14.02(D): (Choose one of (1), (2)
or (3). Choose (4), if applicable)
[ ] (1) Safe harbor nonelective contribution. The safe harbor nonelective
contribution equals % of a Participant's Compensation [Note: the
amount in the blank must be at least 3%.].
[ ] (2) Basic safe harbor matching contribution. A matching contribution
equal to 100% of each Participant's deferral contributions not
exceeding 3% of the Participant's Compensation, plus 50% of each
Participant's deferral contributions in excess of 3% but not in excess
of 5% of the Participant's Compensation. For this purpose,
"Compensation" means Compensation for: ________ . [Note: The Employer
must complete the blank line with the applicable time period for
computing the Employer's basic safe harbor match, such as "each
payroll period," "each month," "each Plan Year quarter" or "the Plan
Year".]
[ ] (3) Enhanced safe harbor matching contribution. (Choose one of a. or
b.).
[ ] a. Uniform percentage. An amount equal to % of each Participant's
deferral contributions not exceeding % of the Participant's
Compensation. For this purpose, "Compensation" means Compensation
for: ________ . [See the Note in (d)(2).]
[ ] b. Tiered formula. An amount equal to the specified matching
percentage for the corresponding level of each Participant's
deferral contribution percentage. For this purpose,
"Compensation" means Compensation for: . [See the Note in
(d)(2).]
Deferral Contribution Percentage Matching Percentage
-------------------------------- -------------------
___________ ___________
___________ ___________
___________ ___________
[Note: The matching percentage may not increase as the deferral contribution
percentage increases and the enhanced matching formula otherwise must satisfy
the requirements of Code ss.ss.401(k)(12)(B)(ii) and (iii). If the Employer
wishes to avoid ACP testing on its enhanced safe harbor matching contribution,
the Employer also must limit deferral contributions taken into account (the
"Deferral Contribution Percentage") for the matching contribution to 6% of Plan
Year Compensation.]
[ ] (4) Another plan. The Employer will satisfy the 401(k) safe harbor
contribution in the following plan: .
[ ] (e) Davis-Bacon contributions. The amount(s) specified for the applicable
Plan Year or other applicable period in the Employer's Davis-Bacon
contract(s). The Employer will make a contribution only to Participants
covered by the contract and only with respect to Compensation paid under
the contract. If the Participant accrues an allocation of nonelective
contributions (including forfeitures) under the Plan in addition to the
Davis-Bacon contribution, the Plan Administrator will: (Choose one of (1)
or (2))
[ ] (1) Not reduce the Participant's nonelective contribution allocation
by the Davis-Bacon contribution.
[ ] (2) Reduce the Participant's nonelective contribution allocation by
the Davis-Bacon contribution.
[ ] (f) Frozen Plan. This Plan is a frozen Plan effective: ________ . For any
period following the specified date, the Employer will not contribute to
the Plan, a Participant may not contribute and an otherwise eligible
Employee will not become a Participant in the Plan.
14. DEFERRAL CONTRIBUTIONS (3.02). The following limitations and terms apply to
an Employee's deferral contributions: (If the Employer elects Section
3.01(a), the Employer must elect (a). Choose (b) or (c) as applicable)
[X] (a) Limitation on amount. An Employee's deferral contributions are subject
to the following limitation(s) in addition to those imposed by the Code:
(Choose (1), (2) or (3) as applicable)
[X] (1) Maximum deferral amount: 80% .
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[X] (2) Minimum deferral amount: 1% .
[ ] (3) No limitations.
For the Plan Year in which an Employee first becomes a Participant, the Plan
Administrator will apply any percentage limitation the Employer elects in (1) or
(2) to the Employee's Compensation: (Choose one of (4) or (5) unless the
Employer elects (3))
[ ] (4) Only for the portion of the Plan Year in which the Employee
actually is a Participant.
[X] (5) For the entire Plan Year.
[ ] (b) Negative deferral election. The Employer will withhold _________%
from the Participant's Compensation unless the Participant elects a lesser
percentage (including zero) under his/her salary reduction agreement. See
Plan Section 14.02(C). The negative election will apply to: (Choose one of
(1) or (2))
[ ] (1) All Participants who have not deferred at least the automatic
deferral amount as of: ___________ .
[ ] (2) Each Employee whose Plan Entry Date is on or following the
negative election effective date.
[ ] (c) Cash or deferred contributions. For each Plan Year for which the
Employer makes a designated cash or deferred contribution under Plan
Section 14.02(B), a Participant may elect to receive directly in cash not
more than the following portion (or, if less, the 402(g) limitation) of
his/her proportionate share of that cash or deferred contribution: (Choose
one of (1) or (2))
[ ] (1) All or any portion. [ ] (2) ________ %.
Modification/revocation of salary reduction agreement. A Participant
prospectively may modify or revoke a salary reduction agreement, or may file a
new salary reduction agreement following a prior revocation, at least once per
Plan Year or during any election period specified by the basic plan document or
required by the Internal Revenue Service. The Plan Administrator also may
provide for more frequent elections in the Plan's salary reduction agreement
form.
15. MATCHING CONTRIBUTIONS (INCLUDING ADDITIONAL SAFE HARBOR MATCH UNDER PLAN
SECTION 14.02(D)(3)) (3.03). The Employer matching contribution is: (If the
Employer elects Section 3.01(b), the Employer must elect one or more of
(a), (b) or (c) as applicable. Choose (d) if applicable)
[X] (a) Fixed formula. An amount equal to 50 % of each Participant's deferral
contributions.
[ ] (b) Discretionary formula. An amount (or additional amount) equal to a
matching percentage the Employer from time to time may deem advisable of
the Participant's deferral contributions. The Employer, in its sole
discretion, may designate as a qualified matching contribution, all or any
portion of its discretionary matching contribution. The portion of the
Employer's discretionary matching contribution for a Plan Year not
designated as a qualified matching contribution is a regular matching
contribution.
[ ] (c) Multiple level formula. An amount equal to the following percentages
for each level of the Participant's deferral contributions. [Note: The
matching percentage only will apply to deferral contributions in excess of
the previous level and not in excess of the stated deferral contribution
percentage.]
Deferral Contributions Matching Percentage
---------------------- -------------------
______________ ______________
______________ ______________
______________ ______________
[ ] (d) Related Employers. If two or more Related Employers contribute to this
Plan, the Plan Administrator will allocate matching contributions and
matching contribution forfeitures only to the Participants directly
employed by the contributing Employer. The matching contribution formula
for the other Related Employer(s) is: ________ . [Note: If the Employer
does not elect (d), the Plan Administrator will allocate all matching
contributions and matching forfeitures without regard to which contributing
Related Employer directly employs the Participant.]
Time period for matching contributions. The Employer will determine its matching
contribution based on deferral contributions made during each: (Choose one of
(e) through (h))
[ ] (e) Plan Year.
[ ] (f) Plan Year quarter.
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[X] (g) Payroll period.
[ ] (h) Alternative time period: ________ . [Note: Any alternative time period
the Employer elects in (h) must be the same for all Participants and may
not exceed the Plan Year.]
Deferral contributions taken into account. In determining a Participant's
deferral contributions taken into account for the above-specified time period
under the matching contribution formula, the following limitations apply:
(Choose one of (i), (j) or (k))
[ ] (i) All deferral contributions. The Plan Administrator will take into
account all deferral contributions.
[X] (j) Specific limitation. The Plan Administrator will disregard deferral
contributions exceeding 6 % of the Participant's Compensation. [Note: To
avoid the ACP test in a safe harbor 401(k) plan, the Employer must limit
deferrals and Employee contributions which are subject to match to 6% of
Plan Year Compensation.]
[ ] (k) Discretionary. The Plan Administrator will take into account the
deferral contributions as a percentage of the Participant's Compensation as
the Employer determines.
Other matching contribution requirements. The matching contribution formula is
subject to the following additional requirements: (Choose (l) or (m) or both if
applicable)
[ ] (l) Matching contribution limits. A Participant's matching contributions
may not exceed: (Choose one of (1) or (2))
[ ] (1) __________ . [Note: The Employer may elect (1) to place an overall
dollar or percentage limit on matching contributions.]
[ ] (2) 4% of a Participant's Compensation for the Plan Year under the
discretionary matching contribution formula. [Note: The Employer must
elect (2) if it elects a discretionary matching formula with the safe
harbor 401(k) contribution formula and wishes to avoid the ACP test.]
[ ] (m) Qualified matching contributions. The Plan Administrator will allocate
as qualified matching contributions, the matching contributions specified
in Adoption Agreement Section: ________ . The Plan Administrator will
allocate all other matching contributions as regular matching
contributions. [Note: If the Employer elects two matching formulas, the
Employer may use (m) to designate one of the formulas as a qualified
matching contribution.]
16. CONTRIBUTION ALLOCATION (3.04).
Employer nonelective contributions (3.04(A)).The Plan Administrator will
allocate the Employer's nonelective contribution under the following
contribution allocation formula: (Choose one of (a), (b) or (c). Choose (d) if
applicable)
[X] (a) Nonintegrated (pro rata) allocation formula.
[ ] (b) Permitted disparity. The following permitted disparity formula and
definitions apply to the Plan: (Choose one of (1) or (2). Also choose (3))
[ ] (1) Two-tiered allocation formula.
[ ] (2) Four-tiered allocation formula.
[ ] (3) For purposes of Section 3.04(b), "Excess Compensation" means
Compensation in excess of: (Choose one of a. or b.)
[ ] a. ___________ % of the taxable wage base in effect on the first
day of the Plan Year, rounded to the next highest $ _____________
(not exceeding the taxable wage base).
[ ] b. The following integration level: ________ .
[Note: The integration level cannot exceed the taxable wage base
in effect for the Plan Year for which this Adoption Agreement
first is effective.]
[ ] (c) Uniform points allocation formula. Under the uniform points allocation
formula, a Participant receives: (Choose (1) or both (1) and (2) as
applicable)
[ ] (1) __________ point(s) for each Year of Service. Year of Service
means: ___________ .
[ ] (2) One point for each $ _________ [not to exceed $200] increment of
Plan Year Compensation.
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[ ] (d) Incorporation of contribution formula. The Plan Administrator will
allocate the Employer's nonelective contribution under Section(s)
3.01(c)(2), (d)(1) or (e) in accordance with the contribution formula
adopted by the Employer under that Section.
Qualified nonelective contributions. (3.04(F)). The Plan Administrator will
allocate the Employer's qualified nonelective contributions to: (Choose one of
(e) or (f))
[X] (e) Nonhighly compensated Employees only.
[ ] (f) All Participants.
Related Employers. (Choose (g) if applicable)
[ ] (g) Allocate only to directly employed Participants. If two or more Related
Employers adopt this Plan, the Plan Administrator will allocate all
nonelective contributions and forfeitures attributable to nonelective
contributions only to the Participants directly employed by the
contributing Employer. If a Participant receives Compensation from more
than one contributing Employer, the Plan Administrator will determine the
allocations under this Section 3.04 by prorating the Participant's
Compensation between or among the participating Related Employers. [Note:
If the Employer does not elect 3.04(g), the Plan Administrator will
allocate all nonelective contributions and forfeitures without regard to
which contributing Related Employer directly employs the Participant. The
Employer may not elect 3.04(g) under a safe harbor 401(k) Plan.]
17. FORFEITURE ALLOCATION (3.05). The Plan Administrator will allocate a
Participant forfeiture: (Choose one or more of (a), (b) or (c) as
applicable) [Note: Even if the Employer elects immediate vesting, the
Employer should complete Section 3.05. See Plan Section 9.11.]
[X] (a) Matching contribution forfeitures. To the extent attributable to
matching contributions: (Choose one of (1) through (4))
[ ] (1) As a discretionary matching contribution.
[X] (2) To reduce matching contributions.
[ ] (3) As a discretionary nonelective contribution.
[ ] (4) To reduce nonelective contributions.
[X] (b) Nonelective contribution forfeitures. To the extent attributable to
Employer nonelective contributions: (Choose one of (1) through (4))
[ ] (1) As a discretionary nonelective contribution.
[X] (2) To reduce nonelective contributions.
[ ] (3) As a discretionary matching contribution.
[ ] (4) To reduce matching contributions.
[ ] (c) Reduce administrative expenses. First to reduce the Plan's ordinary and
necessary administrative expenses for the Plan Year and then allocate any
remaining forfeitures in the manner described in Sections 3.05(a) or (b) as
applicable.
Timing of forfeiture allocation. The Plan Administrator will allocate
forfeitures under Section 3.05 in the Plan Year: (Choose one of (d) or (e))
[X] (d) In which the forfeiture occurs.
[ ] (e) Immediately following the Plan Year in which the forfeiture occurs.
9
18. ALLOCATION CONDITIONS (3.06).18
Allocation conditions. The Plan does not apply any allocation conditions to
deferral contributions, 401(k) safe harbor contributions (under Section 3.01(d))
or to Davis-Bacon contributions (except as the Davis-Bacon contract provides).
To receive an allocation of matching contributions, nonelective contributions,
qualified nonelective contributions or Participant forfeitures, a Participant
must satisfy the following allocation condition(s): (Choose one or more of (a)
through (i) as applicable)
[ ] (a) Hours of Service condition. The Participant must complete at least the
specified number of Hours of Service (not exceeding 1,000) during the Plan
Year: ________ .
[ ] (b) Employment condition. The Participant must be employed by the Employer
on the last day of the ________ (designate time period).
[ ] (c) No allocation conditions.
[ ] (d) Elapsed Time Method. The Participant must complete at least the
specified number (not exceeding 182) of consecutive calendar days of
employment with the Employer during the Plan Year: ________ .
[X] (e) Termination of Service/501 Hours of Service coverage rule. The
Participant either must be employed by the Employer on the last day of the
Plan Year or must complete at least 501 Hours of Service during the Plan
Year. If the Plan uses the Elapsed Time Method of crediting Service, the
Participant must complete at least 91 consecutive calendar days of
employment with the Employer during the Plan Year.
[ ] (f) Special allocation conditions for matching contributions. The
Participant must complete at least ________ Hours of Service during the
(designate time period) for the matching contributions made for that time
period.
[ ] (g) Death, Disability or Normal Retirement Age. Any condition specified in
Section 3.06 ________ applies if the Participant incurs a Separation from
Service during the Plan Year on account of: ________ (e.g., death,
Disability or Normal Retirement Age).
[X] (h) Suspension of allocation conditions for coverage. The suspension of
allocation conditions of Plan Section 3.06(E) applies to the Plan.
[X] (i) Limited allocation conditions. The Plan does not impose an allocation
condition for the following types of contributions: matching contributions.
[Note: Any election to limit the Plan's allocation conditions to certain
contributions must be the same for all Participants, be definitely
determinable and not discriminate in favor of Highly Compensated
Employees.]
ARTICLE IV
PARTICIPANT CONTRIBUTIONS
19. EMPLOYEE (AFTER TAX) CONTRIBUTIONS (4.02). The following elections apply to
Employee contributions: (Choose one of (a) or (b). Choose (c) if
applicable)
[X] (a) Not permitted. The Plan does not permit Employee contributions.
[ ] (b) Permitted. The Plan permits Employee contributions subject to the
following limitations: ________ .
[Note: Any designated limitation(s) must be the same for all Participants,
be definitely determinable and not discriminate in favor of Highly
Compensated Employees.]
[ ] (c) Matching contribution. For each Plan Year, the Employer's matching
contribution made with respect to Employee contributions is: ________ .
ARTICLE V
VESTING REQUIREMENTS
20. NORMAL/EARLY RETIREMENT AGE (5.01). A Participant attains Normal Retirement
Age (or Early Retirement Age, if applicable) under the Plan on the
following date: (Choose one of (a) or (b). Choose (c) if applicable)
[X] (a) Specific age. The date the Participant attains age 65 . [Note: The age
may not exceed age 65.]
10
[ ] (b) Age/participation. The later of the date the Participant attains
________ years of age or the ________ anniversary of the first day of the
Plan Year in which the Participant commenced participation in the Plan.
[Note: The age may not exceed age 65 and the anniversary may not exceed the
5th.]
[ ] (c) Early Retirement Age. Early Retirement Age is the later of: (i) the
date a Participant attains age ________ or (ii) the date a Participant
reaches his/her ________ anniversary of the first day of the Plan Year in
which the Participant commenced participation in the Plan.
21. PARTICIPANT'S DEATH OR DISABILITY (5.02). The 100% vesting rule under Plan
Section 5.02 does not apply to: (Choose (a) or (b) or both as applicable)
[ ] (a) Death.
[ ] (b) Disability.
22. VESTING SCHEDULE (5.03). A Participant has a 100% Vested interest at all
times in his/her deferral contributions, qualified nonelective
contributions, qualified matching contributions, 401(k) safe harbor
contributions and Davis-Bacon contributions (unless otherwise indicated in
(f)). The following vesting schedule applies to Employer regular matching
contributions and to Employer nonelective contributions: (Choose (a) or
choose one or more of (b) through (f) as applicable)
[ ] (a) Immediate vesting. 100% Vested at all times. [Note: The Employer must
elect (a) if the Service condition under Section 2.01 exceeds One Year of
Service or more than twelve months.]
[X] (b) Top-heavy vesting schedules. [Note: The Employer must choose one of
(b)(1), (2) or (3) if it does not elect (a).]
[X] (1) 6-year graded as specified in the Plan. [ ] (3) Modified top-heavy
[ ] (2) 3-year cliff as specified in the Plan. schedule
Years of Vested
Service Percentage
------- ----------
Less than 1 ................... _______ %
1 .......................... _______ %
2 .......................... _______ %
3 .......................... _______ %
4 .......................... _______ %
5 .......................... _______ %
6 or more .................. 100 %
[x] (c) Non-top-heavy vesting schedules. [Note: The Employer may elect one of
(c)(1), (2) or (3) in addition to (b).]
[ ] (1) 7-year graded as specified in the Plan. [ ] (3) Modified non-top-
[ ] (2) 5-year cliff as specified in the Plan. heavy schedule
11
Years of Vested
Service Percentage
------- ----------
Less than 1 ................... _______ %
1 .......................... _______ %
2 .......................... _______ %
3 .......................... _______ %
4 .......................... _______ %
5 .......................... _______ %
6 .......................... _______ %
7 or more .................. 100 %
If the Employer does not elect (c), the vesting schedule elected in (b) applies
to all Plan Years. [Note: The modified top-heavy schedule of (b)(3) must satisfy
Code ss.416. If the Employer elects (c)(3), the modified non-top-heavy schedule
must satisfy Code ss.411(a)(2).]
[ ] (d) Separate vesting election for regular matching contributions. In lieu
of the election under (a), (b) or (c), the following vesting schedule
applies to a Participant's regular matching contributions: (Choose one of
(1) or (2))
[ ] (1) 100% Vested at all times.
[ ] (2) Regular matching vesting schedule: ________ .
[Note: The vesting schedule completed under (d)(2) must comply with
Code ss.411(a)(4).]
[ ] (e) Application of top-heavy schedule. The non-top-heavy schedule elected
under (c) applies in all Plan Years in which the Plan is not a top-heavy
plan. [Note: If the Employer does not elect (e), the top-heavy vesting
schedule will apply for the first Plan Year in which the Plan is top-heavy
and then in all subsequent Plan Years.]
[ ] (f) Special vesting provisions: ________ . [Note: Any special vesting
provision must satisfy Code ss.411(a). Any special vesting provision must
be definitely determinable, not discriminate in favor of Highly Compensated
Employees and not violate Code ss.401(a)(4).]
23. YEAR OF SERVICE - VESTING (5.06). (Choose (a) and (b)): [Note: If the
Employer elects the Elapsed Time Method or elects immediate vesting, the
Employer should not complete (a) or (b).]
[X] (a) Year of Service. An Employee must complete at least 1000 Hours of
Service during a vesting computation period to receive credit for a Year of
Service under Article V. [Note: The number may not exceed 1,000. If left
blank, the requirement is 1,000.]
[X] (b) Vesting computation period. The Plan measures a Year of Service on the
basis of the following 12-consecutive month period: (Choose one of (1) or
(2))
[X] (1) Plan Year.
[ ] (2) Employment year (anniversary of Employment Commencement Date).
24. EXCLUDED YEARS OF SERVICE - VESTING (5.08). The Plan excludes the following
Years of Service for purposes of vesting: (Choose (a) or choose one or more
of (b) through (f) as applicable)
[ ] (a) None. None other than as specified in Plan Section 5.08(a).
[X] (b) Age 18. Any Year of Service before the Year of Service during which the
Participant attained the age of 18.
[ ] (c) Prior to Plan establishment. Any Year of Service during the period the
Employer did not maintain this Plan or a predecessor plan.
[ ] (d) Parity Break in Service. Any Year of Service excluded under the rule of
parity. See Plan Section 5.10.
12
[ ] (e) Prior Plan terms. Any Year of Service disregarded under the terms of
the Plan as in effect prior to this restated Plan.
[ ] (f) Additional exclusions. Any Year of Service before: ________ .
[Note: Any exclusion specified under (f) must comply with Code
ss.411(a)(4). Any exclusion must be definitely determinable, not
discriminate in favor of Highly Compensated Employees and not violate Code
ss.401(a)(4). If the Employer elects immediate vesting, the Employer should
not complete Section 5.08.]
ARTICLE VI
DISTRIBUTION OF ACCOUNT BALANCE
25. TIME OF PAYMENT OF ACCOUNT BALANCE (6.01). The following time of
distribution elections apply to the Plan:
Separation from Service/Vested Account Balance not exceeding $5,000. Subject to
the limitations of Plan Section 6.01(A)(1), the Trustee will distribute in a
lump sum (regardless of the Employer's election under Section 6.04) a separated
Participant's Vested Account Balance not exceeding $5,000: (Choose one of (a)
through (d))
[X] (a) Immediate. As soon as administratively practicable following the
Participant's Separation from Service.
[ ] (b) Designated Plan Year. As soon as administratively practicable in the
______ Plan Year beginning after the Participant's Separation from Service.
[ ] (c) Designated Plan Year quarter. As soon as administratively practicable
in the ______ Plan Year quarter beginning after the Participant's
Separation from Service.
[ ] (d) Designated distribution. As soon as administratively practicable in
the: ______ following the Participant's Separation from Service. [Note: The
designated distribution time must be the same for all Participants, be
definitely determinable, not discriminate in favor of Highly Compensated
Employees and not violate Code ss.401(a)(4).]
Separation from Service/Vested Account Balance exceeding $5,000. A separated
Participant whose Vested Account Balance exceeds $5,000 may elect to commence
distribution of his/her Vested Account Balance no earlier than: (Choose one of
(e) through (i). Choose (j) if applicable)
[X] (e) Immediate. As soon as administratively practicable following the
Participant's Separation from Service.
[ ] (f) Designated Plan Year. As soon as administratively practicable in the
______ Plan Year beginning after the Participant's Separation from Service.
[ ] (g) Designated Plan Year quarter. As soon as administratively practicable
in the ______ Plan Year quarter following the Plan Year quarter in which
the Participant elects to receive a distribution.
[ ] (h) Normal Retirement Age. As soon as administratively practicable after
the close of the Plan Year in which the Participant attains Normal
Retirement Age and within the time required under Plan Section 6.01(A)(2).
[x] (i) Designated distribution. As soon as administratively practicable in
the: ______ following the Participant's Separation from Service. [Note: The
designated distribution time must be the same for all Participants, be
definitely determinable, not discriminate in favor of Highly Compensated
Employees and not violate Code ss.401(a)(4).]
[ ] (j) Limitation on Participant's right to delay distribution. A Participant
may not elect to delay commencement of distribution of his/her Vested
Account Balance beyond the later of attainment of age 62 or Normal
Retirement Age. [Note: If the Employer does not elect (j), the Plan permits
a Participant who has Separated from Service to delay distribution until
his/her required beginning date. See Plan Section 6.01(A)(2).]
Participant elections prior to Separation from Service. A Participant, prior to
Separation from Service may elect any of the following distribution options in
accordance with Plan Section 6.01(C). (Choose (k) or choose one or more of (l)
through (o) as applicable). [Note: If the Employer elects any in-service
distributions option, a Participant may elect to receive one in-service
distribution per Plan Year unless the Plan's in-service distribution form
provides for more frequent in-service distributions.]
[ ] (k) None. A Participant does not have any distribution option prior to
Separation from Service, except as may be provided under Plan Section
6.01(C).
[X] (l) Deferral contributions. Distribution of all or any portion (as
permitted by the Plan) of a Participant's Account Balance attributable to
deferral contributions if: (Choose one or more of (1), (2) or (3) as
applicable)
13
[X] (1) Hardship (safe harbor hardship rule). The Participant has incurred
a hardship in accordance with Plan Sections 6.09 and 14.11(A).
[X] (2) Age. The Participant has attained age 65 (Must be at least age 59
1/2).
[ ] (3) Disability. The Participant has incurred a Disability.
[X] (m) Qualified nonelective contributions/qualified matching
contributions/safe harbor contributions. Distribution of all or any portion
of a Participant's Account Balance attributable to qualified nonelective
contributions, to qualified matching contributions, or to 401(k) safe
harbor contributions if: (Choose (1) or (2) or both as applicable)
[X] (1) Age. The Participant has attained age 65 (Must be at least age 59
1/2).
[ ] (2) Disability. The Participant has incurred a Disability.
[X] (n) Nonelective contributions/regular matching contributions. Distribution
of all or any portion of a Participant's Vested Account Balance
attributable to nonelective contributions or to regular matching
contributions if: (Choose one or more of (1) through (5) as applicable)
[X] (1) Age/Service conditions. (Choose one or more of a. through d. as
applicable):
[X] a. Age. The Participant has attained age 65 .
[ ] b. Two-year allocations. The Plan Administrator has allocated the
contributions to be distributed for a period of not less than
______ Plan Years before the distribution date. [Note: The
minimum number of years is 2.]
[ ] c. Five years of participation. The Participant has participated
in the Plan for at least ______ Plan Years. [Note: The minimum
number of years is 5.]
[ ] d. Vested. The Participant is ______ % Vested in his/her Account
Balance. See Plan Section 5.03(A). [Note: If an Employer makes
more than one election under Section 6.01(n)(1), a Participant
must satisfy all conditions before the Participant is eligible
for the distribution.]
[ ] (2) Hardship. The Participant has incurred a hardship in accordance
with Plan Section 6.09.
[ ] (3) Hardship (safe harbor hardship rule). The Participant has incurred
a hardship in accordance with Plan Sections 6.09 and 14.11(A).
[ ] (4) Disability. The Participant has incurred a Disability.
[ ] (5) Designated condition. The Participant has satisfied the following
condition(s): ______ . [Note: Any designated condition(s) must be the
same for all Participants, be definitely determinable and not
discriminate in favor of Highly Compensated Employees.]
[X] (o) Participant contributions. Distribution of all or any portion of a
Participant's Account Balance attributable to the following Participant
contributions described in Plan Section 4.01: (Choose one of (1), (2) or
(3))
[ ] (1) All Participant contributions.
[ ] (2) Employee contributions only.
[X] (3) Rollover contributions only.
Participant loan default/offset. See Section 6.08 of the Plan.
26. DISTRIBUTION METHOD (6.03). A separated Participant whose Vested Account
Balance exceeds $5,000 may elect distribution under one of the following
method(s) of distribution described in Plan Section 6.03: (Choose one or
more of (a) through (d) as applicable)
[X] (a) Lump sum.
[X] (b) Installments.
[ ] (c) Installments for required minimum distributions only.
14
[X] (d) Annuity distribution option(s): Qualified Joint and Survivor annuity
for assets attributable to the Millington Savings Bank Retirement Plan
account balances. [Note: Any optional method of distribution may not be
subject to Employer, Plan Administrator or Trustee discretion.]
27. JOINT AND SURVIVOR ANNUITY REQUIREMENTS (6.04). The joint and survivor
annuity distribution requirements of Plan Section 6.04: (Choose one of (a)
or (b))
[X] (a) Profit sharing plan exception. Do not apply to a Participant, unless
the Participant is a Participant described in Section 6.04(H) of the Plan.
[ ] (b) Applicable. Apply to all Participants.
ARTICLE IX
PLAN ADMINISTRATOR - DUTIES WITH RESPECT TO PARTICIPANTS' ACCOUNTS
28. ALLOCATION OF NET INCOME, GAIN OR LOSS (9.08). For each type of
contribution provided under the Plan, the Plan allocates net income, gain
or loss using the following method: (Choose one or more of (a) through (e)
as applicable)
[X] (a) Deferral contributions/Employee contributions. (Choose one or more of
(1) through (5) as applicable)
[ ] (1) Daily valuation method. Allocate on each business day of the Plan
Year during which Plan assets for which there is an established market
are valued and the Trustee is conducting business.
[ ] (2) Balance forward method. Allocate using the balance forward method.
[ ] (3) Weighted average method. Allocate using the weighted average
method, based on the following weighting period: ________ . See Plan
Section 14.12.
[ ] (4) Balance forward method with adjustment. Allocate pursuant to the
balance forward method, except treat as part of the relevant Account
at the beginning of the valuation period ______ % of the contributions
made during the following valuation period: ________ .
[X] (5) Individual account method. Allocate using the individual account
method. See Plan Section 9.08.
[X] (b) Matching contributions. (Choose one or more of (1) through (5) as
applicable)
[ ] (1) Daily valuation method. Allocate on each business day of the Plan
Year during which Plan assets for which there is an established market
are valued and the Trustee is conducting business.
[ ] (2) Balance forward method. Allocate using the balance forward method.
[ ] (3) Weighted average method. Allocate using the weighted average
method, based on the following weighting period: ________ . See Plan
Section 14.12.
[ ] (4) Balance forward method with adjustment. Allocate pursuant to the
balance forward method, except treat as part of the relevant Account
at the beginning of the valuation period ______ % of the contributions
made during the following valuation period: ________ .
[X] (5) Individual account method. Allocate using the individual account
method. See Plan Section 9.08.
[X] (c) Employer nonelective contributions. (Choose one or more of (1) through
(5) as applicable)
[ ] (1) Daily valuation method. Allocate on each business day of the Plan
Year during which Plan assets for which there is an established market
are valued and the Trustee is conducting business.
[ ] (2) Balance forward method. Allocate using the balance forward method.
[ ] (3) Weighted average method. Allocate using the weighted average
method, based on the following weighting period: ________ . See Plan
Section 14.12.
[ ] (4) Balance forward method with adjustment. Allocate pursuant to the
balance forward method, except treat as part of the relevant Account
at the beginning of the valuation period ______ % of the contributions
made during the following valuation period: ________ .
[X] (5) Individual account method. Allocate using the individual account
method. See Plan Section 9.08.
15
[ ] (d) Specified method. Allocate pursuant to the following method: ________ .
[Note: The specified method must be a definite predetermined formula which
is not based on Compensation, which satisfies the nondiscrimination
requirements of Treas. Reg. ss.1.401(a)(4) and which is applied uniformly
to all Participants.]
[ ] (e) Interest rate factor. In accordance with Plan Section 9.08(E), the Plan
includes interest at the following rate on distributions made more than 90
days after the most recent valuation date: ________ .
ARTICLE X
TRUSTEE AND CUSTODIAN, POWERS AND DUTIES
29. INVESTMENT POWERS (10.03). The following additional investment options or
limitations apply under Plan Section 10.03: A participant may direct their
account balance and any contributions to their account to be invested in
Qualifying Employer Securities, but at no time may a participant's account
balance be 100% invested in Qualifying Employer Securities, per Plan
Section 10.03(F). [Note: Enter "N/A" if not applicable.]
30. VALUATION OF TRUST (10.15). In addition to the last day of the Plan Year,
the Trustee must value the Trust Fund on the following valuation date(s):
(Choose one of (a) through (d))
[ ] (a) Daily valuation dates. Each business day of the Plan Year on which Plan
assets for which there is an established market are valued and the Trustee
is conducting business.
[X] (b) Last day of a specified period. The last day of each quarter of the
Plan Year.
[ ] (c) Specified dates: ________ .
[ ] (d) No additional valuation dates.
16
Execution Page
The Trustee (and Custodian, if applicable), by executing this Adoption
Agreement, accepts its position and agrees to all of the obligations,
responsibilities and duties imposed upon the Trustee (or Custodian) under the
Prototype Plan and Trust. The Employer hereby agrees to the provisions of this
Plan and Trust, and in witness of its agreement, the Employer by its duly
authorized officers, has executed this Adoption Agreement, and the Trustee (and
Custodian, if applicable) has signified its acceptance, on: November 13, 2006.
Name of Employer: Millington Savings Bank
-----------------------------
Employer's EIN: 22-1118190
-----------------------------
Signed: /s/Gary T. Jolliffe
-----------------------------
Gary T. Jolliffe Pres/CEO
-----------------------------
[Name/Title]
Name(s) of Trustee:
Albert N. Olsen
-----------------------------
Gary T. Jolliffe
-----------------------------
Fred Rossi
-----------------------------
Trust EIN (Optional):
20-5777900
-----------------------------
Signed: /s/Albert N. Olsen Director
-----------------------------
Albert N. Olsen
-----------------------------
[Name/Title]
Signed: /s/Gary T. Jolliffe Pres/CEO
-----------------------------
Gary T. Jolliffe
-----------------------------
[Name/Title]
Signed: /s/Fred Rossi Director
-----------------------------
Fred Rossi
-----------------------------
[Name/Title]
17
Name of Custodian (Optional):
-----------------------------
Signed:
-----------------------------
[Name/Title]
31. Plan Number. The 3-digit plan number the Employer assigns to this Plan for
ERISA reporting purposes (Form 5500 Series) is: 002 .
Use of Adoption Agreement. Failure to complete properly the elections in this
Adoption Agreement may result in disqualification of the Employer's Plan. The
Employer only may use this Adoption Agreement in conjunction with the basic plan
document referenced by its document number on Adoption Agreement page one.
Execution for Page Substitution Amendment Only. If this paragraph is completed,
this Execution Page documents an amendment to Adoption Agreement Section(s)
________ effective ________ , by substitute Adoption Agreement page number(s) .
Prototype Plan Sponsor. The Prototype Plan Sponsor identified on the first page
of the basic plan document will notify all adopting employers of any amendment
of this Prototype Plan or of any abandonment or discontinuance by the Prototype
Plan Sponsor of its maintenance of this Prototype Plan. For inquiries regarding
the adoption of the Prototype Plan, the Prototype Plan Sponsor's intended
meaning of any Plan provisions or the effect of the opinion letter issued to the
Prototype Plan Sponsor, please contact the Prototype Plan Sponsor at the
following address and telephone number:
5700 Westown Parkway, Suite 100, West Des Moines, Iowa 50266, (515) 254-1178 .
- --------------------------------------------------------------------------------
Reliance on Sponsor Opinion Letter. The Prototype Plan Sponsor has obtained from
the IRS an opinion letter specifying the form of this Adoption Agreement and the
basic plan document satisfy, as of the date of the opinion letter, Code ss.401.
An adopting Employer may rely on the Prototype Sponsor's IRS opinion letter only
to the extent provided in Announcement 2001-77, 2001-30 I.R.B. The Employer may
not rely on the opinion letter in certain other circumstances or with respect to
certain qualification requirements, which are specified in the opinion letter
and in Announcement 2001-77. In order to have reliance in such circumstances or
with respect to such qualification requirements, the Employer must apply for a
determination letter to Employee Plans Determinations of the Internal Revenue
Service.
18
PARTICIPATION AGREEMENT
[X] Check here if not applicable and do not complete this page.
The undersigned Employer, by executing this Participation Agreement, elects
to become a Participating Employer in the Plan identified in Section 1.21 of the
accompanying Adoption Agreement, as if the Participating Employer were a
signatory to that Adoption Agreement. The Participating Employer accepts, and
agrees to be bound by, all of the elections granted under the provisions of the
Prototype Plan as made by the Signatory Employer to the Execution Page of the
Adoption Agreement, except as otherwise provided in this Participation
Agreement.
32. EFFECTIVE DATE (1.10). The Effective Date of the Plan for the Participating
Employer is: _____________ .
33. NEW PLAN/RESTATEMENT. The Participating Employer's adoption of this Plan
constitutes: (Choose one of (a) or (b))
[ ] (a) The adoption of a new plan by the Participating Employer.
[ ] (b) The adoption of an amendment and restatement of a plan currently
maintained by the Participating Employer, identified as: ________ , and
having an original effective date of: ________ .
34. PREDECESSOR EMPLOYER SERVICE (1.30). In addition to the predecessor service
credited by reason of Section 1.30 of the Plan, the Plan credits as Service
under this Plan, service with this Participating Employer. (Choose one or
more of (a) through (d) as applicable): [Note: If the Plan does not credit
any additional predecessor service under Section 1.30 for this
Participating Employer, do not complete this election.]
[ ] (a) Eligibility. For eligibility under Article II. See Plan Section 1.30
for time of Plan entry.
[ ] (b) Vesting. For vesting under Article V.
[ ] (c) Contribution allocation. For contribution allocations under Article
III.
[ ] (d) Exceptions. Except for the following Service: ________ .
Name of Plan: Name of Participating Employer:
_________________________________ _______________________________________
Signed: ___________________________
[Name/Title]
___________________________
[Date]
Participating Employer's EIN: ________ .
Acceptance by the Signatory Employer to the Execution Page of the Adoption
Agreement and by the Trustee.
Name of Signatory Employer: Name(s) of Trustee:
_________________________________ _______________________________________
_________________________________ _______________________________________
[Name/Title] [Name/Title]
Signed: Signed:
_________________________________ _______________________________________
_________________________________ _______________________________________
[Date] [Date]
[Note: Each Participating Employer must execute a separate Participation
Agreement. If the Plan does not have a Participating Employer, the Signatory
Employer may delete this page from the Adoption Agreement.]
19
APPENDIX A
TESTING ELECTIONS/EFFECTIVE DATE ADDENDUM
35. The following testing elections and special effective dates apply:
(Choose one or more of (a) through (n) as applicable)
[ ] (a) Highly Compensated Employee (1.14). For Plan Years beginning after
_____________, the Employer makes the following election(s) regarding the
definition of Highly Compensated Employee:
(1) [ ] Top paid group election.
(2) [ ] Calendar year data election (fiscal year plan).
[ ] (b) 401(k) current year testing. The Employer will apply the current year
testing method in applying the ADP and ACP tests effective for Plan Years
beginning after: ________ . [Note: For Plan Years beginning on or after the
Employer's execution of its "GUST" restatement, the Employer must use the
same testing method within the same Plan Year for both the ADP and ACP
tests.]
[ ] (c) Compensation. The Compensation definition under Section 1.07 will apply
for Plan Years beginning after: _____________ .
[ ] (d) Election not to participate. The election not to participate under
Section 2.06 is effective: _____________ .
[ ] (e) 401(k) safe harbor. The 401(k) safe harbor provisions under Section
3.01(d) are effective: _____________ .
[ ] (f) Negative election. The negative election provision under Section
3.02(b) is effective: _____________ .
[ ] (g) Contribution/allocation formula. The specified contribution(s) and
allocation method(s) under Sections 3.01 and 3.04 are effective: ________ .
[ ] (h) Allocation conditions. The allocation conditions of Section 3.06 are
effective: _____________ .
[ ] (i) Benefit payment elections. The distribution elections of Section(s) are
_____________ effective: _____________ .
[ ] (j) Election to continue pre-SBJPA required beginning date. A Participant
may not elect to defer commencement of the distribution of his/her Vested
Account Balance beyond the April 1 following the calendar year in which the
Participant attains age 70 1/2. See Plan Section 6.02(A).
[ ] (k) Elimination of age 70 1/2 in-service distributions. The Plan eliminates
a Participant's (other than a more than 5% owner) right to receive
in-service distributions on April 1 of the calendar year following the year
in which the Participant attains age 70 1/2 for Plan Years beginning after:
________ .
[ ] (l) Allocation of earnings. The earnings allocation provisions under
Section 9.08 are effective: _____________ .
[ ] (m) Elimination of optional forms of benefit. The Employer elects
prospectively to eliminate the following optional forms of benefit: (Choose
one or more of (1), (2) and (3) as applicable)
[ ] (1) QJSA and QPSA benefits as described in Plan Sections 6.04, 6.05
and 6.06 effective: _____________ .
[ ] (2) Installment distributions as described in Section 6.03 effective:
_____________ .
[ ] (3) Other optional forms of benefit (Any election to eliminate must be
consistent with Treas. Reg. ss.1.411(d)-4): _____________ .
[ ] (n) Special effective date(s): ________ .
For periods prior to the above-specified special effective date(s), the
Plan terms in effect prior to its restatement under this Adoption Agreement will
control for purposes of the designated provisions. A special effective date may
not result in the delay of a Plan provision beyond the permissible effective
date under any applicable law.
20
APPENDIX B
GUST Remedial Amendment Period Elections
36. The following GUST restatement elections apply: (Choose one or more of (a)
through (j) as applicable)
[ ] (a) Highly Compensated Employee elections. The Employer makes the following
remedial amendment period elections with respect to the Highly Compensated
Employee definition:
(1) 1997: [ ] Top paid group election. [ ] Calendar year election.
[ ] Calendar year data election.
(2) 1998: [ ] Top paid group election. [ ] Calendar year data election.
(3) 1999: [ ] Top paid group election. [ ] Calendar year data election.
(4) 2000: [ ] Top paid group election. [ ] Calendar year data election.
(5) 2001: [ ] Top paid group election. [ ] Calendar year data election.
(6) 2002: [ ] Top paid group election. [ ] Calendar year data election.
[X] (b) 401(k) testing methods. The Employer makes the following remedial
amendment period elections with respect to the ADP test and the ACP test:
[Note: The Employer may use a different testing method for the ADP and ACP
tests through the end of the Plan Year in which the Employer executes its
GUST restated Plan.]
ADP test ACP test
(1) 1997: [X] prior year [ ] current year 1997: [X] prior year [ ]current year
(2) 1998: [X] prior year [ ] current year 1998: [X] prior year [ ]current year
(3) 1999: [X] prior year [ ] current year 1999: [X] prior year [ ]current year
(4) 2000: [X] prior year [ ] current year 2000: [X] prior year [ ]current year
(5) 2001: [X] prior year [ ] current year 2001: [X] prior year [ ]current year
(6) 2002: [X] prior year [ ] current year 2002: [X] prior year [ ]current year
[ ] (c) Delayed application of SBJPA required beginning date. The Employer
elects to delay the effective date for the required beginning date
provision of Plan Section 6.02 until Plan Years beginning after: ________ .
[ ] (d) Model Amendment for required minimum distributions. The Employer adopts
the IRS Model Amendment in Plan Section 6.02(E) effective _____________ .
[Note: The date must not be earlier than January 1, 2001.]
Defined Benefit Limitation
[ ] (e) Code ss.415(e) repeal. The repeal of the Code ss.415(e) limitation is
effective for Limitation Years beginning after _____________ . [Note:
If the Employer does not make an election under (e), the repeal is
effective for Limitation Years beginning after December 31, 1999.]
Code ss.415(e) limitation. To the extent necessary to satisfy the limitation
under Plan Section 3.17 for Limitation Years beginning prior to the repeal of
Code ss.415(e), the Employer will reduce: (Choose one of (f) or (g))
[ ] (f) The Participant's projected annual benefit under the defined benefit
plan.
[ ] (g) The Employer's contribution or allocation on behalf of the Participant
to the defined contribution plan and then, if necessary, the Participant's
projected annual benefit under the defined benefit plan.
Coordination with top-heavy minimum allocation. The Plan Administrator will
apply the top-heavy minimum allocation provisions of Article XII with the
following modifications: (Choose (h) or choose (i) or (j) or both as applicable)
[ ] (h) No modifications.
[ ] (i) For Non-Key Employees participating only in this Plan, the top-heavy
minimum allocation is the minimum allocation determined by substituting %
_____ % (not less than 4%) for "3%," except: (Choose one of (1) or (2))
[ ] (1) No exceptions.
[ ] (2) Plan Years in which the top-heavy ratio exceeds 90%.
[ ] (j) For Non-Key Employees also participating in the defined benefit plan,
the top-heavy minimum is: (Choose one of (1) or (2))
[ ] (1) 5% of Compensation irrespective of the contribution rate of any Key
Employee: (Choose one of a. or b.)
[ ] a. No exceptions.
[ ] b. Substituting "7 1/2%" for "5%" if the top-heavy ratio does not
exceed 90%.
[ ] (2) 0%. [Note: The defined benefit plan must satisfy the top-heavy
minimum benefit requirement for these Non-Key Employees.]
Actuarial assumptions for top-heavy calculation. To determine the top-heavy
ratio, the Plan Administrator will use the following interest rate and mortality
assumptions to value accrued benefits under a defined benefit plan: ________ .
21
CHECKLIST OF EMPLOYER INFORMATION
AND EMPLOYER ADMINISTRATIVE ELECTIONS
Commencing with the 2006 Plan Year
---------
The Prototype Plan permits the Employer to make certain administrative
elections not reflected in the Adoption Agreement. This form lists those
administrative elections and provides a means of recording the Employer's
elections. This checklist is not part of the Plan document.
37. Employer Information.
Millington Savings Bank
-----------------------------------------------------------------------
[Employer Name]
1902 Long Hill Road
-----------------------------------------------------------------------
[Address]
Millington, New Jersey 07946-1342 (908) 647-3030
--------------------------------- -------------------------
[City, State and Zip Code] [Telephone Number]
38. Form of Business.
(a) [X] Corporation (b) [ ] S Corporation
(c) [ ] Limited Liability Company (d) [ ] Sole Proprietorship
(e) [ ] Partnership (f) [ ] ____________
39. Section 1.07(F) - Nondiscriminatory definition of Compensation. When
testing nondiscrimination under the Plan, the Plan permits the Employer to
make elections regarding the definition of Compensation. [Note: This
election solely is for purposes of nondiscrimination testing. The election
does not affect the Employer's elections under Section 1.07 which apply for
purposes of allocating Employer contributions and Participant forfeitures.]
(a) [X] The Plan will "gross up" Compensation for Elective Contributions.
(b) [ ] The Plan will exclude Elective Contributions.
40. Section 4.04 - Rollover contributions.
(a) [X] The Plan accepts rollover contributions.
(b) [ ] The Plan does not accept rollover contributions.
41. Section 8.06 - Participant direction of investment/404(c). The Plan
authorizes Participant direction of investment with Trustee consent. If the
Trustee permits Participant direction of investment, the Employer and the
Trustee should adopt a policy which establishes the applicable conditions
and limitations, including whether they intend the Plan to comply with
ERISA ss.404(c).
(a) [X] The Plan permits Participant direction of investment and is a
404(c) plan.
(b) [ ] The Plan does not permit Participant direction of investment or is
a non-404(c) plan.
42. Section 9.04[A] - Participant loans. The Plan authorizes the Plan
Administrator to adopt a written loan policy to permit Participant loans.
(a) [X] The Plan permits Participant loans subject to the following
conditions:
(1) [X] Minimum loan amount: $ 1,000 .
(2) [X] Maximum number of outstanding loans: one .
(3) [X] Reasons for which a Participant may request a loan:
a. [X] Any purpose.
b. [ ] Hardship events.
c. [ ] Other: ________ .
(4) [X] Suspension of loan repayments:
a. [ ] Not permitted.
b. [X] Permitted for non-military leave of absence.
c. [X] Permitted for military service leave of absence.
(5) [ ] The Participant must be a party in interest.
(b) [ ] The Plan does not permit Participant loans.
43. Section 11.01 - Life insurance. The Plan with Employer approval authorizes
the Trustee to acquire life insurance.
(a) [ ] The Plan will invest in life insurance contracts.
(b) [X] The Plan will not invest in life insurance contracts.
44. Surety bond company: ____________ . Surety bond amount: $__________
22
EGTRRA
AMENDMENT TO THE
MILLINGTON SAVINGS BANK SAVINGS PLAN
EGTRRA - Sponsor
ARTICLE I
PREAMBLE
1.1 Adoption and effective date of amendment. This amendment of the plan is
adopted to reflect certain provisions of the Economic Growth and Tax Relief
Reconciliation Act of 2001 ("EGTRRA"). This amendment is intended as good
faith compliance with the requirements of EGTRRA and is to be construed in
accordance with EGTRRA and guidance issued thereunder. Except as otherwise
provided, this amendment shall be effective as of the first day of the
first plan year beginning after December 31, 2001.
1.2 Adoption by prototype sponsor. Except as otherwise provided herein,
pursuant to Section 5.01 of Revenue Procedure 2000-20 (or pursuant to the
corresponding provision in Revenue Procedure 89-9 or Revenue Procedure
89-13), the sponsor hereby adopts this amendment on behalf of all adopting
employers.
1.3 Supersession of inconsistent provisions. This amendment shall supersede the
provisions of the plan to the extent those provisions are inconsistent with
the provisions of this amendment.
ARTICLE II
ADOPTION AGREEMENT ELECTIONS
- --------------------------------------------------------------------------------
The questions in this Article II only need to be completed in order to
override the default provisions set forth below. If all of the default
provisions will apply, then these questions should be skipped.
Unless the employer elects otherwise in this Article II, the following
defaults apply:
1) The vesting schedule for matching contributions will be a 6 year
graded schedule (if the plan currently has a graded schedule that does
not satisfy EGTRRA) or a 3 year cliff schedule (if the plan currently
has a cliff schedule that does not satisfy EGTRRA), and such schedule
will apply to all matching contributions (even those made prior to
2002).
2) Rollovers are automatically excluded in determining whether the $5,000
threshold has been exceeded for automatic cash-outs (if the plan is
not subject to the qualified joint and survivor annuity rules and
provides for automatic cash-outs). This is applied to all participants
regardless of when the distributable event occurred.
3) The suspension period after a hardship distribution is made will be 6
months and this will only apply to hardship distributions made after
2001.
4) Catch-up contributions will be allowed.
5) For target benefit plans, the increased compensation limit of $200,000
will be applied retroactively (i.e., to years prior to 2002).
- --------------------------------------------------------------------------------
2.1 Vesting Schedule for Matching Contributions
If there are matching contributions subject to a vesting schedule that does
not satisfy EGTRRA, then unless otherwise elected below, for participants
who complete an hour of service in a plan year beginning after December 31,
2001, the following vesting schedule will apply to all matching
contributions subject to a vesting schedule:
If the plan has a graded vesting schedule (i.e., the vesting schedule
includes a vested percentage that is more than 0% and less than 100%) the
following will apply:
Years of vesting service Nonforfeitable percentage
2 20%
3 40%
4 60%
5 80%
6 100%
If the plan does not have a graded vesting schedule, then matching
contributions will be nonforfeitable upon the completion of 3 years of
vesting service.
In lieu of the above vesting schedule, the employer elects the following
schedule:
a. [ ] 3 year cliff (a participant's accrued benefit derived from
employer matching contributions shall be nonforfeitable upon the
participant's completion of three years of vesting service).
b. [ ] 6 year graded schedule (20% after 2 years of vesting service and
an additional 20% for each year thereafter).
c. [ ] Other (must be at least as liberal as a. or the b. above):
1
EGTRRA - Sponsor
Years of vesting service Nonforfeitable percentage
-------- ---------%
-------- ---------%
-------- ---------%
-------- ---------%
-------- ---------%
The vesting schedule set forth herein shall only apply to participants who
complete an hour of service in a plan year beginning after December 31,
2001, and, unless the option below is elected, shall apply to all matching
contributions subject to a vesting schedule.
d. [ ] The vesting schedule will only apply to matching contributions
made in plan years beginning after December 31, 2001 (the prior
schedule will apply to matching contributions made in prior plan
years).
2.2 Exclusion of Rollovers in Application of Involuntary Cash-out Provisions
(for profit sharing and 401(k) plans only). If the plan is not subject to
the qualified joint and survivor annuity rules and includes involuntary
cash-out provisions, then unless one of the options below is elected,
effective for distributions made after December 31, 2001, rollover
contributions will be excluded in determining the value of the
participant's nonforfeitable account balance for purposes of the plan's
involuntary cash-out rules.
a. [X] Rollover contributions will not be excluded.
b. [ ] Rollover contributions will be excluded only with respect to
distributions made after ___________. (Enter a date no earlier than
December 31, 2001.)
c. [ ] Rollover contributions will only be excluded with respect to
participants who separated from service after ___________. (Enter a
date. The date may be earlier than December 31, 2001.)
2.3 Suspension period of hardship distributions. If the plan provides for
hardship distributions upon satisfaction of the safe harbor (deemed)
standards as set forth in Treas. Reg. Section 1.401(k)-1(d)(2)(iv), then,
unless the option below is elected, the suspension period following a
hardship distribution shall only apply to hardship distributions made after
December 31, 2001.
[x] With regard to hardship distributions made during 2001, a
participant shall be prohibited from making elective deferrals
and employee contributions under this and all other plans until
the later of January 1, 2002, or 6 months after receipt of the
distribution.
2.4 Catch-up contributions (for 401(k) profit sharing plans only): The plan
permits catch-up contributions (Article VI) unless the option below is
elected.
[ ] The plan does not permit catch-up contributions to be made.
2.5 For target benefit plans only: The increased compensation limit ($200,000
limit) shall apply to years prior to 2002 unless the option below is
elected.
[ ] The increased compensation limit will not apply to years prior to
2002.
ARTICLE III
VESTING OF MATCHING CONTRIBUTIONS
3.1 Applicability. This Article shall apply to participants who complete an
Hour of Service after December 31, 2001, with respect to accrued benefits
derived from employer matching contributions made in plan years beginning
after December 31, 2001. Unless otherwise elected by the employer in
Section 2.1 above, this Article shall also apply to all such participants
with respect to accrued benefits derived from employer matching
contributions made in plan years beginning prior to January 1, 2002.
3.2 Vesting schedule. A participant's accrued benefit derived from employer
matching contributions shall vest as provided in Section 2.1 of this
amendment.
ARTICLE IV
INVOLUNTARY CASH-OUTS
4.1 Applicability and effective date. If the plan provides for involuntary
cash-outs of amounts less than $5,000, then unless otherwise elected in
Section 2.2 of this amendment, this Article shall apply for distributions
made after December 31, 2001, and shall apply to all participants. However,
regardless of the preceding, this Article shall not apply if the plan is
subject to the qualified joint and survivor annuity requirements of
Sections 401(a)(11) and 417 of the Code.
4.2 Rollovers disregarded in determining value of account balance for
involuntary distributions. For purposes of the Sections of the plan that
provide for the involuntary distribution of vested accrued benefits of
$5,000 or less, the value of a participant's nonforfeitable account balance
shall be determined without regard to that portion of the account
2
EGTRRA - Sponsor
balance that is attributable to rollover contributions (and earnings
allocable thereto) within the meaning of Sections 402(c), 403(a)(4),
403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16) of the Code. If the value of
the participant's nonforfeitable account balance as so determined is $5,000
or less, then the plan shall immediately distribute the participant's
entire nonforfeitable account balance.
ARTICLE V
HARDSHIP DISTRIBUTIONS
5.1 Applicability and effective date. If the plan provides for hardship
distributions upon satisfaction of the safe harbor (deemed) standards as
set forth in Treas. Reg. Section 1.401(k)-1(d)(2)(iv), then this Article
shall apply for calendar years beginning after 2001.
5.2 Suspension period following hardship distribution. A participant who
receives a distribution of elective deferrals after December 31, 2001, on
account of hardship shall be prohibited from making elective deferrals and
employee contributions under this and all other plans of the employer for 6
months after receipt of the distribution. Furthermore, if elected by the
employer in Section 2.3 of this amendment, a participant who receives a
distribution of elective deferrals in calendar year 2001 on account of
hardship shall be prohibited from making elective deferrals and employee
contributions under this and all other plans until the later of January 1,
2002, or 6 months after receipt of the distribution.
ARTICLE VI
CATCH-UP CONTRIBUTIONS
Catch-up Contributions. Unless otherwise elected in Section 2.4 of this
amendment, all employees who are eligible to make elective deferrals under this
plan and who have attained age 50 before the close of the plan year shall be
eligible to make catch-up contributions in accordance with, and subject to the
limitations of, Section 414(v) of the Code. Such catch-up contributions shall
not be taken into account for purposes of the provisions of the plan
implementing the required limitations of Sections 402(g) and 415 of the Code.
The plan shall not be treated as failing to satisfy the provisions of the plan
implementing the requirements of Section 401(k)(3), 401(k)(11), 401(k)(12),
410(b), or 416 of the Code, as applicable, by reason of the making of such
catch-up contributions.
ARTICLE VII
INCREASE IN COMPENSATION LIMIT
Increase in Compensation Limit. The annual compensation of each participant
taken into account in determining allocations for any plan year beginning after
December 31, 2001, shall not exceed $200,000, as adjusted for cost-of-living
increases in accordance with Section 401(a)(17)(B) of the Code. Annual
compensation means compensation during the plan year or such other consecutive
12-month period over which compensation is otherwise determined under the plan
(the determination period). If this is a target benefit plan, then except as
otherwise elected in Section 2.5 of this amendment, for purposes of determining
benefit accruals in a plan year beginning after December 31, 2001, compensation
for any prior determination period shall be limited to $200,000. The
cost-of-living adjustment in effect for a calendar year applies to annual
compensation for the determination period that begins with or within such
calendar year.
ARTICLE VIII
PLAN LOANS
Plan loans for owner-employees or shareholder-employees. If the plan permits
loans to be made to participants, then effective for plan loans made after
December 31, 2001, plan provisions prohibiting loans to any owner-employee or
shareholder-employee shall cease to apply.
ARTICLE IX
LIMITATIONS ON CONTRIBUTIONS (IRC SECTION 415 LIMITS)
9.1 Effective date. This Section shall be effective for limitation years
beginning after December 31, 2001.
9.2 Maximum annual addition. Except to the extent permitted under Article VI of
this amendment and Section 414(v) of the Code, if applicable, the annual
addition that may be contributed or allocated to a participant's account
under the plan for any limitation year shall not exceed the lesser of:
a. $40,000, as adjusted for increases in the cost-of-living under Section
415(d) of the Code, or
b. 100 percent of the participant's compensation, within the meaning of
Section 415(c)(3) of the Code, for the limitation year.
3
EGTRRA - Sponsor
The compensation limit referred to in b. shall not apply to any
contribution for medical benefits after separation from service (within
the meaning of Section 401(h) or Section 419A(f)(2) of the Code) which
is otherwise treated as an annual addition.
ARTICLE X
MODIFICATION OF TOP-HEAVY RULES
10.1 Effective date. This Article shall apply for purposes of determining
whether the plan is a top-heavy plan under Section 416(g) of the Code
for plan years beginning after December 31, 2001, and whether the plan
satisfies the minimum benefits requirements of Section 416(c) of the
Code for such years. This Article amends the top-heavy provisions of
the plan.
10.2 Determination of top-heavy status.
10.2.1 Key employee. Key employee means any employee or former employee
(including any deceased employee) who at any time during the plan year
that includes the determination date was an officer of the employer
having annual compensation greater than $130,000 (as adjusted under
Section 416(i)(1) of the Code for plan years beginning after December
31, 2002), a 5-percent owner of the employer, or a 1-percent owner of
the employer having annual compensation of more than $150,000. For this
purpose, annual compensation means compensation within the meaning of
Section 415(c)(3) of the Code. The determination of who is a key
employee will be made in accordance with Section 416(i)(1) of the Code
and the applicable regulations and other guidance of general
applicability issued thereunder.
10.2.2 Determination of present values and amounts. This Section 10.2.2 shall
apply for purposes of determining the present values of accrued
benefits and the amounts of account balances of employees as of the
determination date.
a. Distributions during year ending on the determination date. The
present values of accrued benefits and the amounts of account
balances of an employee as of the determination date shall be
increased by the distributions made with respect to the employee
under the plan and any plan aggregated with the plan under
Section 416(g)(2) of the Code during the 1-year period ending on
the determination date. The preceding sentence shall also apply
to distributions under a terminated plan which, had it not been
terminated, would have been aggregated with the plan under
Section 416(g)(2)(A)(i) of the Code. In the case of a
distribution made for a reason other than separation from
service, death, or disability, this provision shall be applied by
substituting "5-year period" for "1-year period."
b. Employees not performing services during year ending on the
determination date. The accrued benefits and accounts of any
individual who has not performed services for the employer during
the 1-year period ending on the determination date shall not be
taken into account.
10.3 Minimum benefits.
10.3.1 Matching contributions. Employer matching contributions shall be taken
into account for purposes of satisfying the minimum contribution
requirements of Section 416(c)(2) of the Code and the plan. The
preceding sentence shall apply with respect to matching contributions
under the plan or, if the plan provides that the minimum contribution
requirement shall be met in another plan, such other plan. Employer
matching contributions that are used to satisfy the minimum
contribution requirements shall be treated as matching contributions
for purposes of the actual contribution percentage test and other
requirements of Section 401(m) of the Code.
10.3.2 Contributions under other plans. The employer may provide, in an
addendum to this amendment, that the minimum benefit requirement shall
be met in another plan (including another plan that consists solely of
a cash or deferred arrangement which meets the requirements of Section
401(k)(12) of the Code and matching contributions with respect to which
the requirements of Section 401(m)(11) of the Code are met). The
addendum should include the name of the other plan, the minimum benefit
that will be provided under such other plan, and the employees who will
receive the minimum benefit under such other plan.
ARTICLE XI
DIRECT ROLLOVERS
11.1 Effective date. This Article shall apply to distributions made after
December 31, 2001.
11.2 Modification of definition of eligible retirement plan. For purposes of
the direct rollover provisions of the plan, an eligible retirement plan
shall also mean an annuity contract described in Section 403(b) of the
Code and an eligible plan under Section 457(b) of the Code which is
maintained by a state, political subdivision of a state, or any agency
or instrumentality of a state or political subdivision of a state and
which agrees to separately account for amounts transferred into such
plan from this plan. The definition of eligible retirement plan shall
also apply in the case of a
4
distribution to a surviving spouse, or to a spouse or former spouse
who is the alternate payee under a qualified domestic relation order,
as defined in Section 414(p) of the Code.
11.3 Modification of definition of eligible rollover distribution to exclude
hardship distributions. For purposes of the direct rollover provisions
of the plan, any amount that is distributed on account of hardship
shall not be an eligible rollover distribution and the distributee may
not elect to have any portion of such a distribution paid directly to
an eligible retirement plan.
11.4 Modification of definition of eligible rollover distribution to include
after-tax employee contributions. For purposes of the direct rollover
provisions in the plan, a portion of a distribution shall not fail to
be an eligible rollover distribution merely because the portion
consists of after-tax employee contributions which are not includible
in gross income. However, such portion may be transferred only to an
individual retirement account or annuity described in Section 408(a) or
(b) of the Code, or to a qualified defined contribution plan described
in Section 401(a) or 403(a) of the Code that agrees to separately
account for amounts so transferred, including separately accounting for
the portion of such distribution which is includible in gross income
and the portion of such distribution which is not so includible.
ARTICLE XII
ROLLOVERS FROM OTHER PLANS
Rollovers from other plans. The employer, operationally and on a
nondiscriminatory basis, may limit the source of rollover contributions that may
be accepted by this plan.
ARTICLE XIII
REPEAL OF MULTIPLE USE TEST
Repeal of Multiple Use Test. The multiple use test described in Treasury
Regulation Section 1.401(m)-2 and the plan shall not apply for plan years
beginning after December 31, 2001.
ARTICLE XIV
ELECTIVE DEFERRALS
14.1 Elective Deferrals - Contribution Limitation. No participant shall be
permitted to have elective deferrals made under this plan, or any other
qualified plan maintained by the employer during any taxable year, in
excess of the dollar limitation contained in Section 402(g) of the Code
in effect for such taxable year, except to the extent permitted under
Article VI of this amendment and Section 414(v) of the Code, if
applicable.
14.2 Maximum Salary Reduction Contributions for SIMPLE plans. If this is a
SIMPLE 401(k) plan, then except to the extent permitted under Article
VI of this amendment and Section 414(v) of the Code, if applicable, the
maximum salary reduction contribution that can be made to this plan is
the amount determined under Section 408(p)(2)(A)(ii) of the Code for
the calendar year.
ARTICLE XV
SAFE HARBOR PLAN PROVISIONS
Modification of Top-Heavy Rules. The top-heavy requirements of Section 416 of
the Code and the plan shall not apply in any year beginning after December 31,
2001, in which the plan consists solely of a cash or deferred arrangement which
meets the requirements of Section 401(k)(12) of the Code and matching
contributions with respect to which the requirements of Section 401(m)(11) of
the Code are met.
ARTICLE XVI
DISTRIBUTION UPON SEVERANCE OF EMPLOYMENT
16.1 Effective date. This Article shall apply for distributions and
transactions made after December 31, 2001, regardless of when the
severance of employment occurred.
16.2 New distributable event. A participant's elective deferrals, qualified
nonelective contributions, qualified matching contributions, and
earnings attributable to these contributions shall be distributed on
account of the participant's severance from employment. However, such a
distribution shall be subject to the other provisions of the plan
regarding distributions, other than provisions that require a
separation from service before such amounts may be distributed.
5
EGTRRA - Sponsor
Except with respect to any election made by the employer in Article II, this
amendment is hereby adopted by the prototype sponsor on behalf of all adopting
employers on:
[Sponsor's signature and Adoption Date are on file with Sponsor]
NOTE: The employer only needs to execute this amendment if an election has been
made in Article II of this amendment.
This amendment has been executed this 13 day of November 2006.
----------- ------------
Name of Employer: Millington Savings Bank
---------------------------
By /s/ Gary T. Jolliffe
------------------------------------------
6
POST-EGTRRA
AMENDMENT TO THE
MILLINGTON SAVINGS BANK SAVINGS PLAN
POST-EGTRRA - Sponsor
ARTICLE I
PREAMBLE
1.1 Adoption and effective date of amendment. This amendment of the plan is
adopted to reflect certain provisions of the Economic Growth and Tax
Relief Reconciliation Act of 2001 ("EGTRRA"), the Job Creation and
Worker Assistance Act of 2002, IRS Regulations issued pursuant to IRC
ss.401(a)(9), and other IRS guidance. This amendment is intended as
good faith compliance with the requirements of EGTRRA and is to be
construed in accordance with EGTRRA and guidance issued thereunder.
Except as otherwise provided, this amendment shall be effective as of
the first day of the first plan year beginning after December 31, 2001.
1.2 Supersession of inconsistent provisions. This amendment shall supersede
the provisions of the plan to the extent those provisions are
inconsistent with the provisions of this amendment.
1.3 Adoption by prototype sponsor. Except as otherwise provided herein,
pursuant to Section 5.01 of Revenue Procedure 2000-20, the sponsor
hereby adopts this amendment on behalf of all adopting employers.
ARTICLE II
ADOPTION AGREEMENT ELECTIONS
The questions in this Article II only need to be completed in order to
override the default provisions set forth below. If all of the default
provisions will apply, then these questions should be skipped.
Unless the employer elects otherwise in this Article II, the following
defaults apply:
1. If catch-up contributions are permitted, then the catch-up
contributions are treated like any other elective deferrals for
purposes of determining matching contributions under the plan.
2. For plans subject to the qualified joint and survivor annuity
rules, rollovers are automatically excluded in determining
whether the $5,000 threshold has been exceeded for automatic
cash-outs (if the plan provides for automatic cash-outs). This is
applied to all participants regardless of when the distributable
event occurred.
3. The minimum distribution requirements are effective for
distribution calendar years beginning with the 2002 calendar
year. In addition, participants or beneficiaries may elect on an
individual basis whether the 5-year rule or the life expectancy
rule in the plan applies to distributions after the death of a
participant who has a designated beneficiary.
4. Amounts that are "deemed 125 compensation" are not included in
the definition of compensation.
2.1 Exclusion of Rollovers in Application of Involuntary Cash-out
Provisions. If the plan is subject to the joint and survivor annuity
rules and includes involuntary cash-out provisions, then unless one of
the options below is elected, effective for distributions made after
December 31, 2001, rollover contributions will be excluded in
determining the value of a participant's nonforfeitable account balance
for purposes of the plan's involuntary cash-out rules.
a. [X] Rollover contributions will not be excluded.
b. [ ] Rollover contributions will be excluded only with respect to
distributions made after ________ . (Enter a date no earlier than
December 31, 2001).
c. [ ] Rollover contributions will only be excluded with respect to
participants who separated from service after ________ . (Enter a
date. The date may be earlier than December 31, 2001.)
2.2 Catch-up contributions (for 401(k) profit sharing plans only): The plan
permits catch-up contributions effective for calendar years beginning
after December 31, 2001, (Article V) unless otherwise elected below.
a. [ ] The plan does not permit catch-up contributions to be made.
b. [ ] Catch-up contributions are permitted effective as of: (enter
a date no earlier than January 1, 2002).
And, catch-up contributions will be taken into account in applying any
matching contribution under the Plan unless otherwise elected below. c.
[ ] Catch-up contributions will not be taken into account in applying
any matching contribution under the Plan.
2.3 Amendment for Section 401(a)(9) Final and Temporary Treasury
Regulations.
a. Effective date. Unless a later effective date is specified in
below, the provisions of Article VI of this amendment will apply
for purposes of determining required minimum distributions for
calendar years beginning with the 2002 calendar year.
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POST-EGTRRA - Sponsor
[X] This amendment applies for purposes of determining required
minimum distributions for distribution calendar years
beginning with the 2003 calendar year, as well as required
minimum distributions for the 2002 distribution calendar
year that are made on or after April 17, 2002 (leave blank
if this amendment does not apply to any minimum
distributions for the 2002 distribution calendar year).
b. Election to not permit Participants or Beneficiaries to Elect
5-Year Rule.
Unless elected below, Participants or beneficiaries may elect on
an individual basis whether the 5-year rule or the life
expectancy rule in Sections 6.2.2 and 6.4.2 of this amendment
applies to distributions after the death of a Participant who has
a designated beneficiary. The election must be made no later than
the earlier of September 30 of the calendar year in which
distribution would be required to begin under Section 6.2.2 of
this amendment, or by September 30 of the calendar year which
contains the fifth anniversary of the Participant's (or, if
applicable, surviving spouse's) death. If neither the Participant
nor beneficiary makes an election under this paragraph,
distributions will be made in accordance with Sections 6.2.2 and
6.4.2 of this amendment and, if applicable, the elections in
Section 2.3.c of this amendment below.
[ ] The provision set forth above in this Section 2.3.b shall
not apply. Rather, Sections 6.2.2 and 6.4.2 of this
amendment shall apply except as elected in Section 2.3.c of
this amendment below.
c. Election to Apply 5-Year Rule to Distributions to Designated
Beneficiaries.
[ ] If the Participant dies before distributions begin and there
is a designated beneficiary, distribution to the designated
beneficiary is not required to begin by the date specified
in the Plan, but the Participant's entire interest will be
distributed to the designated beneficiary by December 31 of
the calendar year containing the fifth anniversary of the
Participant's death. If the Participant's surviving spouse
is the Participant's sole designated beneficiary and the
surviving spouse dies after the Participant but before
distributions to either the Participant or the surviving
spouse begin, this election will apply as if the surviving
spouse were the Participant.
If the above is elected, then this election will apply to:
1. [ ] All distributions.
2. [ ] The following distributions: ________ .
d. Election to Allow Designated Beneficiary Receiving Distributions
Under 5-Year Rule to Elect Life Expectancy Distributions.
[ ] A designated beneficiary who is receiving payments under the
5-year rule may make a new election to receive payments
under the life expectancy rule until December 31, 2003,
provided that all amounts that would have been required to
be distributed under the life expectancy rule for all
distribution calendar years before 2004 are distributed by
the earlier of December 31, 2003, or the end of the 5-year
period.
2.4 Deemed 125 Compensation. Article VII of this amendment shall not
apply unless otherwise elected below.
[ ] Article VII of this amendment (Deemed 125 Compensation)
shall apply effective as of Plan Years and Limitation Years
beginning on or after (insert the later of January 1, 1998,
or the first day of the first plan year the Plan used this
definition).
ARTICLE III
INVOLUNTARY CASH-OUTS
3.1 Applicability and effective date. If the plan is subject to the
qualified joint and survivor annuity rules and provides for involuntary
cash-outs of amounts less than $5,000, then unless otherwise elected in
Section 2.1 of this amendment, this Article shall apply for
distributions made after December 31, 2001, and shall apply to all
participants.
3.2 Rollovers disregarded in determining value of account balance for
involuntary distributions. For purposes of the Sections of the plan
that provide for the involuntary distribution of vested accrued
benefits of $5,000 or less, the value of a participant's nonforfeitable
account balance shall be determined without regard to that portion of
the account balance that is attributable to rollover contributions (and
earnings allocable thereto) within the meaning of Sections 402(c),
403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16) of the Code. If
the value of the participant's
2
POST-EGTRRA - Sponsor
nonforfeitable account balance as so determined is $5,000 or less,
then the plan shall immediately distribute the participant's entire
nonforfeitable account balance.
ARTICLE IV
HARDSHIP DISTRIBUTIONS
Reduction of Section 402(g) of the Code following hardship distribution. If the
plan provides for hardship distributions upon satisfaction of the safe harbor
(deemed) standards as set forth in Treas. Reg. Section 1.401(k)-1(d)(2)(iv),
then effective as of the date the elective deferral suspension period is reduced
from 12 months to 6 months pursuant to EGTRRA, there shall be no reduction in
the maximum amount of elective deferrals that a Participant may make pursuant to
Section 402(g) of the Code solely because of a hardship distribution made by
this plan or any other plan of the Employer.
ARTICLE V
CATCH-UP CONTRIBUTIONS
Catch-up Contributions. Unless otherwise elected in Section 2.2 of this
amendment, effective for calendar years beginning after December 31, 2001, all
employees who are eligible to make elective deferrals under this plan and who
have attained age 50 before the close of the calendar year shall be eligible to
make catch-up contributions in accordance with, and subject to the limitations
of, Section 414(v) of the Code. Such catch-up contributions shall not be taken
into account for purposes of the provisions of the plan implementing the
required limitations of Sections 402(g) and 415 of the Code. The plan shall not
be treated as failing to satisfy the provisions of the plan implementing the
requirements of Sections 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of
the Code, as applicable, by reason of the making of such catch-up contributions.
If elected in Section 2.2, catch-up contributions shall not be treated as
elective deferrals for purposes of applying any Employer matching contributions
under the plan.
ARTICLE VI
REQUIRED MINIMUM DISTRIBUTIONS
6.1 GENERAL RULES
6.1.1 Effective Date. Unless a later effective date is specified in Section
2.3.a of this amendment, the provisions of this amendment will apply
for purposes of determining required minimum distributions for calendar
years beginning with the 2002 calendar year.
6.1.2 Coordination with Minimum Distribution Requirements Previously in
Effect. If the effective date of this amendment is earlier than
calendar years beginning with the 2003 calendar year, required minimum
distributions for 2002 under this amendment will be determined as
follows. If the total amount of 2002 required minimum distributions
under the Plan made to the distributee prior to the effective date of
this amendment equals or exceeds the required minimum distributions
determined under this amendment, then no additional distributions will
be required to be made for 2002 on or after such date to the
distributee. If the total amount of 2002 required minimum
distributions under the Plan made to the distributee prior to the
effective date of this amendment is less than the amount determined
under this amendment, then required minimum distributions for 2002 on
and after such date will be determined so that the total amount of
required minimum distributions for 2002 made to the distributee will
be the amount determined under this amendment.
6.1.3 Precedence. The requirements of this amendment will take precedence
over any inconsistent provisions of the Plan.
6.1.4 Requirements of Treasury Regulations Incorporated. All distributions
required under this amendment will be determined and made in accordance
with the Treasury regulations under Section 401(a)(9) of the Internal
Revenue Code.
6.1.5 TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions
of this amendment, distributions may be made under a designation made
before January 1, 1984, in accordance with Section 242(b)(2) of the Tax
Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the
Plan that relate to Section 242(b)(2) of TEFRA.
6.2 TIME AND MANNER OF DISTRIBUTION
6.2.1 Required Beginning Date. The Participant's entire interest will
be distributed, or begin to be distributed, to the Participant no
later than the Participant's required beginning date.
6.2.2 Death of Participant Before Distributions Begin. If the Participant
dies before distributions begin, the Participant's entire interest will
be distributed, or begin to be distributed, no later than as follows:
(a) If the Participant's surviving spouse is the Participant's sole
designated beneficiary, then, except as provided in Article VI,
distributions to the surviving spouse will begin by December 31 of the
calendar year immediately following
3
POST-EGTRRA - Sponsor
the calendar year in which the Participant died, or by December 31 of
the calendar year in which the Participant would have attained age
70 1/2, if later.
(b) If the Participant's surviving spouse is not the Participant's sole
designated beneficiary, then, except as provided in Section 2.3 of this
amendment, distributions to the designated beneficiary will begin by
December 31 of the calendar year immediately following the calendar
year in which the Participant died.
(c) If there is no designated beneficiary as of September 30 of the
year following the year of the Participant's death, the Participant's
entire interest will be distributed by December 31 of the calendar year
containing the fifth anniversary of the Participant's death.
(d) If the Participant's surviving spouse is the Participant's sole
designated beneficiary and the surviving spouse dies after the
Participant but before distributions to the surviving spouse begin,
this Section 6.2.2, other than Section 6.2.2(a), will apply as if the
surviving spouse were the Participant.
For purposes of this Section 6.2.2 and Section 2.3, unless Section
6.2.2(d) applies, distributions are considered to begin on the
Participant's required beginning date. If Section 6.2.2(d) applies,
distributions are considered to begin on the date distributions are
required to begin to the surviving spouse under Section 6.2.2(a). If
distributions under an annuity purchased from an insurance company
irrevocably commence to the Participant before the Participant's
required beginning date (or to the Participant's surviving spouse
before the date distributions are required to begin to the surviving
spouse under Section 6.2.2(a)), the date distributions are considered
to begin is the date distributions actually commence.
6.2.3 Forms of Distribution. Unless the Participant's interest is distributed
in the form of an annuity purchased from an insurance company or in a
single sum on or before the required beginning date, as of the first
distribution calendar year distributions will be made in accordance
with Sections 6.3 and 6.4 of this amendment. If the Participant's
interest is distributed in the form of an annuity purchased from an
insurance company, distributions thereunder will be made in accordance
with the requirements of Section 401(a)(9) of the Code and the Treasury
regulations.
6.3 REQUIRED MINIMUM DISTRIBUTIONS DURING PARTICIPANT'S LIFETIME
6.3.1 Amount of Required Minimum Distribution For Each Distribution Calendar
Year. During the Participant's lifetime, the minimum amount that will
be distributed for each distribution calendar year is the lesser of:
(a) the quotient obtained by dividing the Participant's account balance
by the distribution period in the Uniform Lifetime Table set forth in
Section 1.401(a)(9)-9 of the Treasury regulations, using the
Participant's age as of the Participant's birthday in the distribution
calendar year; or
(b) if the Participant's sole designated beneficiary for the
distribution calendar year is the Participant's spouse, the quotient
obtained by dividing the Participant's account balance by the number in
the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9 of
the Treasury regulations, using the Participant's and spouse's attained
ages as of the Participant's and spouse's birthdays in the distribution
calendar year.
6.3.2 Lifetime Required Minimum Distributions Continue Through Year of
Participant's Death. Required minimum distributions will be determined
under this Section 6.3 beginning with the first distribution calendar
year and up to and including the distribution calendar year that
includes the Participant's date of death.
6.4 REQUIRED MINIMUM DISTRIBUTIONS AFTER PARTICIPANT'S DEATH
6.4.1 Death On or After Date Distributions Begin.
(a) Participant Survived by Designated Beneficiary. If the Participant
dies on or after the date distributions begin and there is a designated
beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant's death is
the quotient obtained by dividing the Participant's account balance by
the longer of the remaining life expectancy of the Participant or the
remaining life expectancy of the Participant's designated beneficiary,
determined as follows:
(1) The Participant's remaining life expectancy is calculated
using the age of the Participant in the year of death, reduced by
one for each subsequent year.
(2) If the Participant's surviving spouse is the Participant's
sole designated beneficiary, the remaining life expectancy of the
surviving spouse is calculated for each distribution calendar
year after the year of the Participant's death using the
surviving spouse's age as of the spouse's birthday in that year.
For distribution calendar years after the year of the surviving
spouse's death, the remaining life expectancy of the surviving
4
spouse is calculated using the age of the surviving spouse as of
the spouse's birthday in the calendar year of the spouse's death,
reduced by one for each subsequent calendar year.
(3) If the Participant's surviving spouse is not the
Participant's sole designated beneficiary, the designated
beneficiary's remaining life expectancy is calculated using the
age of the beneficiary in the year following the year of the
Participant's death, reduced by one for each subsequent year.
(b) No Designated Beneficiary. If the Participant dies on or after the
date distributions begin and there is no designated beneficiary as of
September 30 of the year after the year of the Participant's death, the
minimum amount that will be distributed for each distribution calendar
year after the year of the Participant's death is the quotient obtained
by dividing the Participant's account balance by the Participant's
remaining life expectancy calculated using the age of the Participant
in the year of death, reduced by one for each subsequent year.
6.4.2 Death Before Date Distributions Begin.
(a) Participant Survived by Designated Beneficiary. Except as provided
in Section 2.3, if the Participant dies before the date distributions
begin and there is a designated beneficiary, the minimum amount that
will be distributed for each distribution calendar year after the year
of the Participant's death is the quotient obtained by dividing the
Participant's account balance by the remaining life expectancy of the
Participant's designated beneficiary, determined as provided in Section
6.4.1.
(b) No Designated Beneficiary. If the Participant dies before the date
distributions begin and there is no designated beneficiary as of
September 30 of the year following the year of the Participant's death,
distribution of the Participant's entire interest will be completed by
December 31 of the calendar year containing the fifth anniversary of
the Participant's death.
(c) Death of Surviving Spouse Before Distributions to Surviving Spouse
Are Required to Begin. If the Participant dies before the date
distributions begin, the Participant's surviving spouse is the
Participant's sole designated beneficiary, and the surviving spouse
dies before distributions are required to begin to the surviving spouse
under Section 6.2.2(a), this Section 6.4.2 will apply as if the
surviving spouse were the Participant.
6.5 DEFINITIONS
6.5.1 Designated beneficiary. The individual who is designated as the
Beneficiary under the Plan and is the designated beneficiary under
Section 401(a)(9) of the Internal Revenue Code and Section
1.401(a)(9)-1, Q&A-4, of the Treasury regulations.
6.5.2 Distribution calendar year. A calendar year for which a minimum
distribution is required. For distributions beginning before the
Participant's death, the first distribution calendar year is the
calendar year immediately preceding the calendar year which contains
the Participant's required beginning date. For distributions beginning
after the Participant's death, the first distribution calendar year is
the calendar year in which distributions are required to begin under
Section 6.2.2. The required minimum distribution for the Participant's
first distribution calendar year will be made on or before the
Participant's required beginning date. The required minimum
distribution for other distribution calendar years, including the
required minimum distribution for the distribution calendar year in
which the Participant's required beginning date occurs, will be made
on or before December 31 of that distribution calendar year.
6.5.3 Life expectancy. Life expectancy as computed by use of the Single
Life Table in Section 1.401(a)(9)-9 of the Treasury regulations.
6.5.4 Participant's account balance. The account balance as of the last
valuation date in the calendar year immediately preceding the
distribution calendar year (valuation calendar year) increased by the
amount of any contributions made and allocated or forfeitures allocated
to the account balance as of the dates in the valuation calendar year
after the valuation date and decreased by distributions made in the
valuation calendar year after the valuation date. The account balance
for the valuation calendar year includes any amounts rolled over or
transferred to the Plan either in the valuation calendar year or in the
distribution calendar year if distributed or transferred in the
valuation calendar year.
6.5.5 Required beginning date. The date specified in the Plan when
distributions under Section 401(a)(9) of the Internal Revenue Code are
required to begin.
ARTICLE VII
DEEMED 125 COMPENSATION
If elected, this Article shall apply as of the effective date specified in
Section 2.4 of this amendment. For purposes of any definition of compensation
under this Plan that includes a reference to amounts under Section 125 of the
Code, amounts under Section 125 of the Code include any amounts not available to
a Participant in cash in lieu of group health coverage because the
6
POST-EGTRRA - Sponsor
Participant is unable to certify that he or she has other health coverage. An
amount will be treated as an amount under Section 125 of the Code only if the
Employer does not request or collect information regarding the Participant's
other health coverage as part of the enrollment process for the health plan.
Except with respect to any election made by the employer in Article II, this
amendment is hereby adopted by the prototype sponsor on behalf of all adopting
employers on
[Sponsor's signature and Adoption Date are on file with Sponsor]
NOTE: The employer only needs to execute this amendment if an election has been
made in Article II of this amendment.
This amendment has been executed this 13 day of Nov , 2006
----------- ------- --------
Name of Plan: Millington Savings Bank Savings Plan
------------------------------------
Name of Employer: Millington Savings Bank
------------------------------------
By: /s/Gary T. Jolliffe
----------------------------------------------------
EMPLOYER
6
Sponsor - lower cash-out threshold
MANDATORY DISTRIBUTION AMENDMENT
(Code Section 401(a)(31)(B))
ARTICLE I
APPLICATION OF AMENDMENT
1.1 Effective Date. Unless a later effective date is specified in Article
III of this Amendment, the provisions of this Amendment will apply with
respect to distributions made on or after March 28, 2005.
1.2 Precedence. This Amendment supersedes any inconsistent provision of the
Plan.
1.3 Adoption by prototype sponsor. Except as otherwise provided herein,
pursuant to authority granted by Section 5.01 of Revenue Procedure
2000-20, the sponsoring organization of the prototype hereby adopts
this amendment on behalf of all adopting employers.
ARTICLE II
DEFAULT PROVISION: LOWER MANDATORY CASH-OUT
THRESHOLD TO $1,000
Unless the Employer otherwise elects in Article III of this Amendment, the
provisions of the Plan for the mandatory distribution of amounts not exceeding
$5,000, are amended as follows:
The $5,000 threshold in such provisions is reduced to $1,000 and the value of
the Participant's interest in the Plan for such purpose shall include any
rollover contributions (and earnings thereon) within the meaning of Code
Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16).
ARTICLE III
EMPLOYER'S ALTERNATIVE ELECTIONS
3.1 ( ) Effective Date of Plan Amendment
This Amendment applies with respect to distributions made on or after
(may be a date later than March 28, 2005, only if the terms of the Plan
already comply with Code Section 401(a)(31)(B)).
3.2 ( ) Election to implement automatic IRA rollover rules
a. ( ) IRA rollover of amounts over $1,000. In lieu of the default
provision in Article II of this Amendment, the provisions of the
Plan concerning mandatory distributions of amounts not exceeding
$5,000 are amended as follows:
In the event of a mandatory distribution greater than $1,000 that
is made in accordance with the provisions of the Plan providing
for an automatic distribution to a Participant without the
Participant's consent, if the Participant does not elect to have
such distribution paid directly to an "eligible retirement plan"
specified by the Participant in a direct rollover (in accordance
with the direct rollover provisions of the Plan) or to receive
the distribution directly, then the Administrator shall pay the
distribution in a direct rollover to an individual retirement
plan designated by the Administrator.
b. ( ) IRA rollover of amounts over and under $1,000. In lieu of the
default provision in Article II of this Amendment, the provisions
of the Plan concerning mandatory distributions of amounts not
exceeding $5,000 are amended as follows:
In the event of a mandatory distribution that is made in
accordance with the provisions of the Plan providing for an
automatic distribution to a Participant without the Participant's
consent, if the Participant does not elect to have such
distribution paid directly to an "eligible retirement plan"
specified by the Participant in a direct rollover (in accordance
with the direct rollover provisions of the Plan) or to receive
the distribution directly, then the Administrator shall pay the
distribution in a direct rollover to an individual retirement
plan designated by the Administrator.
1
Sponsor - lower cash-out threshold
3.3 ( ) Election is modify mandatory distribution threshold (may not be
elected if 3.2 above is elected)
In lieu of the default provision in Article II of this Amendment,
the provisions of the Plan that provide for the involuntary
distribution of vested accrued benefits of $5,000 or less, are
modified as follows:
a. ( ) No mandatory distributions. Participant consent to the
distribution shall now be required before the distribution
may be made.
b. ( ) Reduction of threshold to amount less than $1,000. The
$5,000 dollar threshold in such provisions is reduced to
$__________ (enter an amount less than $1,000) and the
value of the Participant's interest in the Plan for such
purpose shall include any rollover contributions (and
earnings thereon) within the meaning of Code Sections
402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and
457(e)(16).
Except with respect to any election made by the employer in Article III, this
amendment is hereby adopted by the prototype sponsor on behalf of all adopting
employers on:
[Sponsor's signature and Adoption Date are on file with Sponsor]
NOTE: The employer only needs to execute this amendment if an election has been
made in Article III herein.
This amendment has been executed this 13 day of Nov , 2006
--------- -------- --------
Name of Plan: Millington Savings Bank Savings Plan
------------------------------------
Name of Employer: Millington Savings Bank
------------------------------------
By: /s/Gary T. Jolliffe
-----------------------------------------------------
EMPLOYER
2
Final 401(k) Amendment - Sponsor
FINAL 401(k)/401(m) REGULATIONS AMENDMENT
ARTICLE I
PREAMBLE
1.1 Adoption and effective date of amendment. The sponsor adopts this
Amendment to the Plan to reflect certain provisions of the Final
Regulations under Code Sections 401(k) and 401(m) that were published
on December 29, 2004 (hereinafter referred to as the "Final 401(k)
Regulations"). The sponsor intends this Amendment as good faith
compliance with the requirements of these provisions. This Amendment
shall be effective with respect to Plan Years beginning after December
31, 2005 unless the Employer otherwise elects in Section 2.1 below.
1.2 Supersession of inconsistent provisions. This Amendment shall supersede
the provisions of the Plan to the extent those provisions are
inconsistent with the provisions of this Amendment.
1.3 Application of provisions. Certain provisions of this Amendment relate
to elective deferrals of a 401(k) plan; if the Plan to which this
Amendment relates is not a 401(k) plan, then those provisions of this
Amendment do not apply. Certain provisions of this Amendment relate to
matching contributions and/or after-tax employee contributions subject
to Code Section 401(m); if the Plan to which this Amendment relates is
not subject to Code Section 401(m), then those provisions of this
Amendment do not apply.
1.4 Adoption by prototype sponsor. Except as otherwise provided herein,
pursuant to the provisions of the Plan and Section 5.01 of Revenue
Procedure 2005-16, the sponsor hereby adopts this Amendment on behalf
of all adopting employers.
ARTICLE II
EMPLOYER ELECTIONS
2.1 Effective Date. This Amendment is effective, and the Plan shall
implement the provisions of the Final 401(k) Regulations, with respect
to Plan Years beginning after December 31, 2005 unless the Employer
elects an earlier effective date in either a. or b.:
a. [ ] The Amendment is effective and the Final 401(k) Regulations
apply to Plan Years beginning after December 31, 2004 (2005 and
subsequent Plan Years).
b. [ ] The Amendment is effective and the Final 401(k) Regulations
apply to Plan Years ending after December 29, 2004 (2004 and
subsequent Plan Years).
2.2 ACP Test Safe Harbor. Unless otherwise selected below, if this Plan
uses the ADP Test Safe Harbor provisions, then the provisions of
Amendment Section 9.2(a) apply and all matching contributions under the
Plan will be applied without regard to any allocation conditions except
as provided in that Section.
a. [ ] The provisions of Amendment Section 9.2(b) apply. The
allocation conditions applicable to matching contributions under
the Plan continue to apply (if selected, the Plan is not an ACP
Test Safe Harbor Plan).
b. [ ] The provisions of Amendment Section 9.2(c) apply. All
matching contributions under the Plan will be applied without
regard to any allocation conditions as of the effective date of
this Amendment.
ARTICLE III
GENERAL RULES
3.1 Deferral elections. A cash or deferred arrangement ("CODA") is an
arrangement under which eligible Employees may make elective deferral
elections. Such elections cannot relate to compensation that is
currently available prior to the adoption or effective date of the
CODA. In addition, except for occasional, bona fide administrative
considerations, contributions made pursuant to such an election cannot
precede the earlier of (1) the performance of services relating to the
contribution and (2) when the compensation that is subject to the
election would be currently available to the Employee in the absence of
an election to defer.
3.2 Vesting provisions. Elective Contributions are always fully vested and
nonforfeitable. The Plan shall disregard Elective Contributions in
applying the vesting provisions of the Plan to other contributions or
benefits under Code Section 411(a)(2). However, the Plan shall
otherwise take a Participant's Elective Contributions into account in
determining the Participant's vested benefits under the Plan. Thus, for
example, the Plan shall take Elective Contributions into account in
determining whether a Participant has a nonforfeitable right to
contributions under the Plan for purposes of forfeitures, and for
applying provisions permitting the repayment of distributions to have
forfeited amounts restored, and the provisions of Code Sections
410(a)(5)(D)(iii) and 411(a)(6)(D)(iii) permitting a plan to disregard
certain service completed prior to breaks-in-service (sometimes
referred to as "the rule of parity").
1
Final 401(k) Amendment - Sponsor
ARTICLE IV
HARDSHIP DISTRIBUTIONS
4.1 Applicability. The provisions of this Article IV apply if the Plan
provides for hardship distributions upon satisfaction of the deemed
immediate and heavy financial need standards set forth in Regulation
Section 1.401(k)-1(d)(2)(iv)(A) as in effect prior to the issuance of
the Final 401(k) Regulations.
4.2 Hardship events. A distribution under the Plan is hereby deemed to be
on account of an immediate and heavy financial need of an Employee if
the distribution is for one of the following or any other item
permitted under Regulation Section 1.401(k)-1(d)(3)(iii)(B):
(a) Expenses for (or necessary to obtain) medical care that would be
deductible under Code Section 213(d) (determined without regard
to whether the expenses exceed 7.5% of adjusted gross income);
(b) Costs directly related to the purchase of a principal residence
for the Employee (excluding mortgage payments);
(c) Payment of tuition, related educational fees, and room and board
expenses, for up to the next twelve (12) months of post-secondary
education for the Employee, the Employee's spouse, children, or
dependents (as defined in Code Section 152, and, for taxable
years beginning on or after January 1, 2005, without regard to
Code Section 152(b)(1), (b)(2), and (d)(1)(B));
(d) Payments necessary to prevent the eviction of the Employee from
the Employee's principal residence or foreclosure on the mortgage
on that residence;
(e) Payments for burial or funeral expenses for the Employee's
deceased parent, spouse, children or dependents (as defined in
Code Section 152, and, for taxable years beginning on or after
January 1, 2005, without regard to Code Section 152(d)(1)(B)); or
(f) Expenses for the repair of damage to the Employee's principal
residence that would qualify for the casualty deduction under
Code Section 165 (determined without regard to whether the loss
exceeds 10% of adjusted gross income).
4.3 Reduction of Code Section 402(g) limit following hardship distribution.
If the Plan provides for hardship distributions upon satisfaction of
the safe harbor standards set forth in Regulation Sections
1.401(k)-1(d)(3)(iii)(B) (deemed immediate and heavy financial need)
and 1.401(k)-1(d)(3)(iv)(E) (deemed necessary to satisfy immediate
need), then there shall be no reduction in the maximum amount of
elective deferrals that a Participant may make pursuant to Code Section
402(g) solely because of a hardship distribution made by this Plan or
any other plan of the Employer.
ARTICLE V
ACTUAL DEFERRAL PERCENTAGE (ADP) TEST
5.1 Targeted contribution limit. Qualified Nonelective Contributions (as
defined in Regulation Section 1.401(k)-6) cannot be taken into account
in determining the Actual Deferral Ratio (ADR) for a Plan Year for a
Non-Highly Compensated Employee (NHCE) to the extent such contributions
exceed the product of that NHCE's Code Section 414(s) compensation and
the greater of five percent (5%) or two (2) times the Plan's
"representative contribution rate." Any Qualified Nonelective
Contribution taken into account under an Actual Contribution Percentage
(ACP) test under Regulation Section 1.401(m)-2(a)(6) (including the
determination of the representative contribution rate for purposes of
Regulation Section 1.401(m)-2(a)(6)(v)(B)), is not permitted to be
taken into account for purposes of this Section (including the
determination of the "representative contribution rate" under this
Section). For purposes of this Section:
(a) The Plan's "representative contribution rate" is the lowest
"applicable contribution rate" of any eligible NHCE among a group
of eligible NHCEs that consists of half of all eligible NHCEs for
the Plan Year (or, if greater, the lowest "applicable
contribution rate" of any eligible NHCE who is in the group of
all eligible NHCEs for the Plan Year and who is employed by the
Employer on the last day of the Plan Year), and
(b) The "applicable contribution rate" for an eligible NHCE is the
sum of the Qualified Matching Contributions (as defined in
Regulation Section 1.401(k)-6) taken into account in determining
the ADR for the eligible NHCE for the Plan Year and the Qualified
Nonelective Contributions made for the eligible NHCE for the Plan
Year, divided by the eligible NHCE's Code Section 414(s)
compensation for the same period.
Notwithstanding the above, Qualified Nonelective Contributions that are
made in connection with an Employer's obligation to pay prevailing
wages under the Davis-Bacon Act (46 Stat. 1494), Public Law 71-798,
Service Contract Act of 1965 (79 Stat. 1965), Public Law 89-286, or
similar legislation can be taken into account for a Plan Year for an
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Final 401(k) Amendment - Sponsor
NHCE to the extent such contributions do not exceed 10 percent (10%) of
that NHCE's Code Section 414(s) compensation.
Qualified Matching Contributions may only be used to calculate an ADR
to the extent that such Qualified Matching Contributions are matching
contributions that are not precluded from being taken into account
under the ACP test for the Plan Year under the rules of Regulation
Section 1.401(m)-2(a)(5)(ii) and as set forth in Section 7.1.
5.2 Limitation on QNECs and QMACs. Qualified Nonelective Contributions and
Qualified Matching Contributions cannot be taken into account to
determine an ADR to the extent such contributions are taken into
account for purposes of satisfying any other ADP test, any ACP test, or
the requirements of Regulation Section 1.401(k)-3, 1.401(m)-3, or
1.401(k)-4. Thus, for example, matching contributions that are made
pursuant to Regulation Section 1.401(k)-3(c) cannot be taken into
account under the ADP test. Similarly, if a plan switches from the
current year testing method to the prior year testing method pursuant
to Regulation Section 1.401(k)-2(c), Qualified Nonelective
Contributions that are taken into account under the current year
testing method for a year may not be taken into account under the prior
year testing method for the next year.
5.3 ADR of HCE if multiple plans. The Actual Deferral Ratio (ADR) of any
Participant who is a Highly Compensated Employee (HCE) for the Plan
Year and who is eligible to have Elective Contributions (as defined in
Regulation Section 1.401(k)-6) (and Qualified Nonelective Contributions
and/or Qualified Matching Contributions, if treated as Elective
Contributions for purposes of the ADP test) allocated to such
Participant's accounts under two (2) or more cash or deferred
arrangements described in Code Section 401(k), that are maintained by
the same Employer, shall be determined as if such Elective
Contributions (and, if applicable, such Qualified Nonelective
Contributions and/or Qualified Matching Contributions) were made under
a single arrangement. If an HCE participates in two or more cash or
deferred arrangements of the Employer that have different Plan Years,
then all Elective Contributions made during the Plan Year being tested
under all such cash or deferred arrangements shall be aggregated,
without regard to the plan years of the other plans. However, for Plan
Years beginning before the effective date of this Amendment, if the
plans have different Plan Years, then all such cash or deferred
arrangements ending with or within the same calendar year shall be
treated as a single cash or deferred arrangement. Notwithstanding the
foregoing, certain plans shall be treated as separate if mandatorily
disaggregated under the Regulations of Code Section 401(k).
5.4 Plans using different testing methods for the ADP and ACP test. Except
as otherwise provided in this Section, the Plan may use the current
year testing method or prior year testing method for the ADP test for a
Plan Year without regard to whether the current year testing method or
prior year testing method is used for the ACP test for that Plan Year.
However, if different testing methods are used, then the Plan cannot
use:
(a) The recharacterization method of Regulation Section
1.401(k)-2(b)(3) to correct excess contributions for a Plan Year;
(b) The rules of Regulation Section 1.401(m)-2(a)(6)(ii) to take
Elective Contributions into account under the ACP test (rather
than the ADP test); or
(c) The rules of Regulation Section 1.401(k)-2(a)(6)(v) to take
Qualified Matching Contributions into account under the ADP test
(rather than the ACP test).
ARTICLE VI
ADJUSTMENT TO ADP TEST
6.1 Distribution of Income attributable to Excess Contributions.
Distributions of Excess Contributions must be adjusted for income (gain
or loss), including an adjustment for income for the period between the
end of the Plan Year and the date of the distribution (the "gap
period"). The Administrator has the discretion to determine and
allocate income using any of the methods set forth below:
(a) Reasonable method of allocating income. The Administrator may use
any reasonable method for computing the income allocable to
Excess Contributions, provided that the method does not violate
Code Section 401(a)(4), 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 to
Participant's accounts. A Plan will not fail to use a reasonable
method for computing the income allocable to Excess Contributions
merely because the income allocable to Excess Contributions is
determined on a date that is no more than seven (7) days before
the distribution.
(b) Alternative method of allocating income. The Administrator may
allocate income to Excess Contributions for the Plan Year by
multiplying the income for the Plan Year allocable to the
Elective Contributions and other amounts taken into account under
the ADP test (including contributions made for the Plan Year), by
a fraction, the numerator of which is the Excess Contributions
for the Employee for the Plan Year, and the denominator of which
is the sum of the:
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Final 401(k) Amendment - Sponsor
(1) Account balance attributable to Elective Contributions and
other amounts taken into account under the ADP test as of
the beginning of the Plan Year, and
(2) Any additional amount of such contributions made for the
Plan Year.
(c) Safe harbor method of allocating gap period income. The
Administrator may use the safe harbor method in this paragraph to
determine income on Excess Contributions for the gap period.
Under this safe harbor method, income on Excess Contributions for
the gap period is equal to ten percent (10%) of the income
allocable to Excess Contributions for the Plan Year that would be
determined under paragraph (b) above, multiplied by the number of
calendar months that have elapsed since the end of the Plan Year.
For purposes of calculating the number of calendar months that
have elapsed under the safe harbor method, a corrective
distribution that is made on or before the fifteenth (15th) day
of a month is treated as made on the last day of the preceding
month and a distribution made after the fifteenth day of a month
is treated as made on the last day of the month.
(d) Alternative method for allocating Plan Year and gap period
income. The Administrator may determine the income for the
aggregate of the Plan Year and the gap period, by applying the
alternative method provided by paragraph (b) above to this
aggregate period. This is accomplished by (1) substituting the
income for the Plan Year and the gap period, for the income for
the Plan Year, and (2) substituting the amounts taken into
account under the ADP test for the Plan Year and the gap period,
for the amounts taken into account under the ADP test for the
Plan Year in determining the fraction that is multiplied by that
income.
6.2 Corrective contributions. If a failed ADP test is to be corrected by
making an Employer contribution, then the provisions of the Plan for
the corrective contributions shall be applied by limiting the
contribution made on behalf of any NHCE pursuant to such provisions to
an amount that does not exceed the targeted contribution limits of
Section 5.1 of this Amendment, or in the case of a corrective
contribution that is a Qualified Matching Contribution, the targeted
contribution limit of Section 7.1 of this Amendment.
ARTICLE VII
ACTUAL CONTRIBUTION PERCENTAGE (ACP) TEST
7.1 Targeted matching contribution limit. A matching contribution with
respect to an Elective Contribution for a Plan Year is not taken into
account under the Actual Contribution Percentage (ACP) test for an NHCE
to the extent it exceeds the greatest of:
(a) five percent (5%) of the NHCE's Code Section 414(s) compensation
for the Plan Year;
(b) the NHCE's Elective Contributions for the Plan Year; and
(c) the product of two (2) times the Plan's "representative matching
rate" and the NHCE's Elective Contributions for the Plan Year.
For purposes of this Section, the Plan's "representative matching rate"
is the lowest "matching rate" for any eligible NHCE among a group of
NHCEs that consists of half of all eligible NHCEs in the Plan for the
Plan Year who make Elective Contributions for the Plan Year (or, if
greater, the lowest "matching rate" for all eligible NHCEs in the Plan
who are employed by the Employer on the last day of the Plan Year and
who make Elective Contributions for the Plan Year).
For purposes of this Section, the "matching rate" for an Employee
generally is the matching contributions made for such Employee divided
by the Employee's Elective Contributions for the Plan Year. If the
matching rate is not the same for all levels of Elective Contributions
for an Employee, then the Employee's "matching rate" is determined
assuming that an Employee's Elective Contributions are equal to six
percent (6%) of Code Section 414(s) compensation.
If the Plan provides a match with respect to the sum of the Employee's
after-tax Employee contributions and Elective Contributions, then for
purposes of this Section, that sum is substituted for the amount of the
Employee's Elective Contributions in subsections (b) & (c) above and in
determining the "matching rate," and Employees who make either
after-tax Employee contributions or Elective Contributions are taken
into account in determining the Plan's "representative matching rate."
Similarly, if the Plan provides a match with respect to the Employee's
after-tax Employee contributions, but not Elective Contributions, then
for purposes of this subsection, the Employee's after-tax Employee
contributions are substituted for the amount of the Employee's Elective
Contributions in subsections (b) & (c) above and in determining the
"matching rate," and Employees who make after-tax Employee
contributions are taken into account in determining the Plan's
"representative matching rate."
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Final 401(k) Amendment - Sponsor
7.2 Targeted QNEC limit. Qualified Nonelective Contributions (as defined in
Regulation Section 1.401(k)-6) cannot be taken into account under the
Actual Contribution Percentage (ACP) test for a Plan Year for an NHCE
to the extent such contributions exceed the product of that NHCE's Code
Section 414(s) compensation and the greater of five percent (5%) or two
(2) times the Plan's "representative contribution rate." Any Qualified
Nonelective Contribution taken into account under an Actual Deferral
Percentage (ADP) test under Regulation Section 1.401(k)-2(a)(6)
(including the determination of the "representative contribution rate"
for purposes of Regulation Section 1.401(k)-2(a)(6)(iv)(B)) is not
permitted to be taken into account for purposes of this Section
(including the determination of the "representative contribution rate"
for purposes of subsection (a) below). For purposes of this Section:
(a) The Plan's "representative contribution rate" is the lowest
"applicable contribution rate" of any eligible NHCE among a group
of eligible NHCEs that consists of half of all eligible NHCEs for
the Plan Year (or, if greater, the lowest "applicable
contribution rate" of any eligible NHCE who is in the group of
all eligible NHCEs for the Plan Year and who is employed by the
Employer on the last day of the Plan Year), and
(b) The "applicable contribution rate" for an eligible NHCE is the
sum of the matching contributions (as defined in Regulation
Section 1.401(m)-1(a)(2)) taken into account in determining the
ACR for the eligible NHCE for the Plan Year and the Qualified
Nonelective Contributions made for that NHCE for the Plan Year,
divided by that NHCE's Code Section 414(s) compensation for the
Plan Year.
Notwithstanding the above, Qualified Nonelective Contributions that are
made in connection with an Employer's obligation to pay prevailing
wages under the Davis-Bacon Act (46 Stat. 1494), Public Law 71-798,
Service Contract Act of 1965 (79 Stat. 1965), Public Law 89-286, or
similar legislation can be taken into account for a Plan Year for an
NHCE to the extent such contributions do not exceed 10 percent (10%) of
that NHCE's Code Section 414(s) compensation.
7.3 ACR of HCE if multiple plans. The Actual Contribution Ratio (ACR) for
any Participant who is a Highly Compensated Employee (HCE) and who is
eligible to have matching contributions or after-tax Employee
contributions allocated to his or her account under two (2) or more
plans described in Code Section 401(a), or arrangements described in
Code Section 401(k) that are maintained by the same Employer, shall be
determined as if the total of such contributions was made under each
plan and arrangement. If an HCE participates in two (2) or more such
plans or arrangements that have different plan years, then all matching
contributions and after-tax Employee contributions made during the Plan
Year being tested under all such plans and arrangements shall be
aggregated, without regard to the plan years of the other plans. For
plan years beginning before the effective date of this Amendment, all
such plans and arrangements ending with or within the same calendar
year shall be treated as a single plan or arrangement. Notwithstanding
the foregoing, certain plans shall be treated as separate if
mandatorily disaggregated under the Regulations of Code Section 401(m).
7.4 Plans using different testing methods for the ACP and ADP test. Except
as otherwise provided in this Section, the Plan may use the current
year testing method or prior year testing method for the ACP test for a
Plan Year without regard to whether the current year testing method or
prior year testing method is used for the ADP test for that Plan Year.
However, if different testing methods are used, then the Plan cannot
use:
(a) The recharacterization method of Regulation Section
1.401(k)-2(b)(3) to correct excess contributions for a Plan Year;
(b) The rules of Regulation Section 1.401(m)-2(a)(6)(ii) to take
Elective Contributions into account under the ACP test (rather
than the ADP test); or
(c) The rules of Regulation Section 1.401(k)-2(a)(6) to take
Qualified Matching Contributions into account under the ADP test
(rather than the ACP test).
ARTICLE VIII
ADJUSTMENT TO ACP TEST
8.1 Distribution of Income attributable to Excess Aggregate Contributions.
Distributions of Excess Aggregate Contributions must be adjusted for
income (gain or loss), including an adjustment for income for the
period between the end of the Plan Year and the date of the
distribution (the "gap period"). For the purpose of this Section,
"income" shall be determined and allocated in accordance with the
provisions of Section 6.1 of this Amendment, except that such Section
shall be applied by substituting "Excess Contributions" with "Excess
Aggregate Contributions" and by substituting amounts taken into account
under the ACP test for amounts taken into account under the ADP test.
8.2 Corrective contributions. If a failed ACP test is to be corrected by
making an Employer contribution, then the provisions of the Plan for
the corrective contributions shall be applied by limiting the
contribution made on behalf of any NHCE pursuant to such provisions to
an amount that does not exceed the targeted contribution limits of
Sections 7.1 and 7.2 of this Amendment.
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Final 401(k) Amendment - Sponsor
ARTICLE IX
SAFE HARBOR PLAN PROVISIONS
9.1 Applicability. The provisions of this Article IX apply if the Plan uses
the alternative method of satisfying the Actual Deferral Percentage
(ADP) test set forth in Code Section 401(k)(12) (ADP Test Safe Harbor)
and/or the Actual Contribution Percentage (ACP) test set forth in Code
Section 401(m)(11) (ACP Test Safe Harbor).
9.2 Elimination of conditions on matching contributions. Unless otherwise
provided in Section 2.2 of this Amendment, the provisions of subsection
(a) below shall apply. However, if the Employer so elects in Section
2.2 of this Amendment, then the provisions of subsection (b) or (c)
below shall apply.
(a) Default provision. If, prior to the date this Amendment has been
executed, an ADP Test Safe Harbor notice has been given for a
Plan Year for which this Amendment is effective (see Amendment
Section 1.1) and such notice provides that there are no
allocation conditions imposed on any matching contributions under
the Plan, then (1) the Plan will be an ACP Test Safe Harbor plan,
provided the ACP Test Safe Harbor requirements are met and (2)
the Plan will not impose any allocation conditions on matching
contributions. However, if, prior to the date this Amendment has
been executed, an ADP Test Safe Harbor notice has been given for
a Plan Year for which this Amendment is effective and such notice
provides that there are allocation conditions imposed on any
matching contributions under the Plan, then the provisions of
this Amendment do not modify any such allocation conditions or
provisions for that Plan Year and the Plan must satisfy the ACP
Test for such Plan Year using the current year testing method.
With respect to any Plan Year beginning after the date this
Amendment has been executed, if the Plan uses the ADP Test Safe
Harbor and provides for matching contributions, then (1) the Plan
will be an ACP Test Safe Harbor plan, provided the ACP Test Safe
Harbor requirements are met and (2) the Plan will not impose any
allocation conditions on matching contributions.
(b) Retention of allocation conditions. If the Employer so elects in
Section 2.2 of this Amendment, then the Plan will retain any
allocation conditions contained in the Plan with regard to
matching contributions for any Plan Year for which this Amendment
is effective. In that case, the Plan must satisfy the ACP Test
for each such Plan Year.
(c) Elimination of allocation conditions. If the Employer so elects
in Section 2.2 of this Amendment, then (1) the Plan will be an
ACP Test Safe Harbor plan, provided the ACP Test Safe Harbor
requirements are met, and (2) the Plan will not impose any
allocation conditions on matching contributions.
9.3 Matching Catch-up contributions. If the Plan provides for ADP Test Safe
Harbor matching contributions or ACP Test Safe Harbor matching
contributions, then catch-up contributions (as defined in Code Section
414(v)) will be taken into account in applying such matching
contributions under the Plan.
9.4 Plan Year requirement. Except as provided in Regulation Sections
1.401(k)-3(e) and 1.401(k)-3(f), and below, the Plan will fail to
satisfy the requirements of Code Section 401(k)(12) and this Section
for a Plan Year unless such provisions remain in effect for an entire
twelve (12) month Plan Year.
9.5 Change of Plan Year. If a Plan has a short Plan Year as a result of
changing its Plan Year, then the Plan will not fail to satisfy the
requirements of Section 9.4 of this Amendment merely because the Plan
Year has less than twelve (12) months, provided that:
(a) The Plan satisfied the ADP Test Safe Harbor and/or ACP Test Safe
Harbor requirements for the immediately preceding Plan Year; and
(b) The Plan satisfies the ADP Test Safe Harbor and/or ACP Test Safe
Harbor requirements (determined without regard to Regulation
Section 1.401(k)-3(g)) for the immediately following Plan Year
(or for the immediately following twelve (12) months if the
immediately following Plan Year is less than twelve (12) months).
9.6 Timing of matching contributions. If the ADP Test Safe Harbor
contribution being made to the Plan is a matching contribution (or any
ACP Test Safe Harbor matching contribution) that is made separately
with respect to each payroll period (or with respect to all payroll
periods ending with or within each month or quarter of a Plan Year)
taken into account under the Plan for the Plan Year, then safe harbor
matching contributions with respect to any elective deferrals and/or
after-tax employee contributions made during a Plan Year quarter must
be contributed to the Plan by the last day of the immediately following
Plan Year quarter.
9.7 Exiting safe harbor matching. The Employer may amend the Plan during a
Plan Year to reduce or eliminate prospectively any or all matching
contributions under the Plan (including any ADP Test Safe Harbor
matching contributions) provided: (a) the Plan Administrator provides
a supplemental notice to the Participants which explains the
consequences of the amendment, specifies the amendment's effective
date, and informs Participants that they will
6
Final 401(k) Amendment - Sponsor
have a reasonable opportunity to modify their cash or deferred
elections and, if applicable, after-tax Employee contribution
elections; (b) participants have a reasonable opportunity (including a
reasonable period after receipt of the supplemental notice) prior to
the effective date of the amendment to modify their cash or deferred
elections and, if applicable, after-tax Employee contribution
elections; and (c) the amendment is not effective earlier than the
later of: (i) thirty (30) days after the Plan Administrator gives
supplemental notice; or (ii) the date the Employer adopts the
amendment. An Employer which amends its Plan to eliminate or reduce
any matching contribution under this Section, effective during the
Plan Year, must continue to apply all of the ADP Test Safe Harbor
and/or ACP Test Safe Harbor requirements of the Plan until the
amendment becomes effective and also must apply for the entire Plan
Year, using current year testing, the ADP test and the ACP test.
9.8 Plan termination. An Employer may terminate the Plan during a Plan Year
in accordance with Plan termination provisions of the Plan and this
Section.
(a) Acquisition/disposition or substantial business hardship. If the
Employer terminates the Plan resulting in a short Plan Year, and
the termination is on account of an acquisition or disposition
transaction described in hardship within the meaning of Code
Section 412(d), then the Plan remains an ADP Test Safe Harbor
and/or ACP Test Safe Harbor Plan provided that the Employer
satisfies the ADP Test Safe harbor and/or ACP Test Safe Harbor
provisions through the effective date of the Plan termination.
(b) Other termination. If the Employer terminates the Plan for any
reason other than as described in Section 9.7(a) above, and the
termination results in a short Plan Year, the Employer must
conduct the termination under the provisions of Section 9.7
above, except that the Employer need not provide Participants
with the right to change their cash or deferred elections.
Except with respect to any election made by the employer in Article II, this
amendment is hereby adopted by the prototype sponsor on behalf of all adopting
employers on:
[Sponsor's signature and Adoption Date are on file with Sponsor]
NOTE: The employer only needs to execute this amendment if an election has been
made in Article II herein.
This amendment has been executed this 13 day of Nov , 2006
--------- -------- --------
Name of Plan: Millington Savings Bank Savings Plan
------------------------------------
Name of Employer: Millington Savings Bank
------------------------------------
By: /s/Gary T. Jolliffe
-----------------------------------------------------
EMPLOYER
7