Reso 2006-995 - Laserfiche WebLink

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There is no fixed maximum or minimum contribution amount or percentage for irrevocable election contribu- tions of compensation or leave. If you desire to provide for such limits, however, you may do so. you must define earnings in Section VI.A.I if you allow an election with respect to compensation. For newly eligible employees, you may allow an election window of no more than 60 calendar days from the date of initial eligibility during which they may make the election to contribute. Contributions may begin no earli- er than the calendar month fOllowing the end of the election window. If the employee does not make the election in the year of initial eligibility, the election to contribute may be made in a later year. You may provide an annual election window of no more than 60 calendar days during which these employees may make their elections. Contributions may not begin until the following calendar year for employees that wait until a later year to make their election. In either case, the election may not be revoked. Annual Irrevocable Election to Contribute Leave Accruing in the Next Calendar Year Your RHS Plan can also allow participants to contribute sick, vacation and other types of leave that are scheduled to be accrued in the next calendar year on a tax-deferred basis. As with irrevocable election contributions of compensation and accrued leave, no FICA or income tax is payable on these future accrual contributions and, if used for medical expenses for the participant, spouse and dependents, no FICA or income tax will be due at dis- tribution. To allow your employees to make annual elections to contribute leave accruing in the next calendar year, com- plete Section VI.B.l.c. Future leave accrual contributions must be elected prior to the start of the next calendar year - employees may not elect to contribute the value of their sick and vacation leave for the calendar year during which the election is made. There is no exception for newly eligible employees - all elections must be made in the prior calendar year. You may specify the type(s) of leave that may be contributed pursuant to the annual irrevocable election to con- tribute future accruals. In addition, you may specify whether you wish contributions of future leave accruals to be made as the leave is earned or at the end of the year. In either case, the leave must be retained for contribu- tion to the RHS plan. In the case where you specify contributions to be made at the end of the year, the leave must be placed in "reserve" as it accrues such that the employee cannot access it. The leave must be con- tributed to the RHS Plan. There is no fixed maximum or minimum contribution amount or percentage for annual irrevocable election con- tributions of future leave accruals. If you desire to provide for such limits, however, you may do so. Your employees' election to contribute future leave accruals will apply to all succeeding years until revised by the employee on the VantageCare RHS Plan Annual Prospective Leave Election Form. Voluntary After- Tax Contributions If you choose, your employees may elect to make voluntary after-tax contributions to their RHS accounts. In order to protect the tax-exempt status of your RHS Trust, aggregate employee after-tax contributions are limited to no more than 25% of total contributions to your RHS plan. You may specify a lower limit. andlor enforce the limit at the employee level if you wish. After-tax contributions are subject to FICA (if applicable) and income tax. To allow your employees to make voluntary after-tax contributions, complete Section VI.B.2. Your employees may modify their after-tax contribution election at any time by completing the VantageCare RHS Plan Employee After- Tax Contribution Election Form. C. Limits on Contributions You may establish limits on each type of RHS Plan contribution by completing the pertinent sections referenced above. In addition, you may establish an overall limitation on RHS plan contributions by completing Section 7