Source of funds - employee pretax contribution
(no employer funds), b.
3 million pretax contribution
of the extra week in the fiscal 2012 quarter and the prior-year $952.
3% at the end of June, made a pretax contribution
of EUR142m in April-June 2011, up by 34% on the year.
The maximum pretax contribution
dollar amount is set by law and adjusted for inflation annually.
Over time, the impact of this additional rate of return--coupled with the pretax contribution
allowance--can be substantial.
401(k) contributions: Because of the limited participation of rank-and-file employees in the 401(k) plan, the executives are limited to an annual pretax contribution
of $4,500 to the plan (the 2012 IRS limit on employee pretax contributions
9 billion, while the unit's pretax contribution
to earnings, net of allocated interest expense, increased 20.
For both the ADP and ACP safe harbor formulas, the 1998 IRS guidance required that 1) participants must be notified in writing of the contributions at least 30 days, and not more than 90 days, prior to the beginning of the plan year (but there was a transitional rule for the 1999 plan year), 2) participants must be provided with a reasonable period to make or change a pretax contribution
election, 3) participants must be provided with flexibility in setting their pretax contribution
rates to obtain the maximum match or less than the maximum match, 4) the plan's procedures for changing the rate of pretax contributions
had to be explained in the notice, and 5) the plan sponsor could not discontinue the safe harbor contributions during the year.
3% to $665 million, while the pretax contribution