Howard E. Clendenen - Page 6

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               provides for benefits or contributions which exceed the                
               limitations of section 415.                                            
               Section 415(a)(1) provides that a trust which is part of a             
          pension, profit-sharing, or stock bonus plan shall not constitute           
          a qualified trust under section 401(a) if--                                 
                         (B) in the case of a defined contribution                    
                    plan, contributions and other additions under the                 
                    plan with respect to any participant for any                      
                    taxable year exceed the limitation of subsection                  
                    (c) * * * [.]                                                     
          Section 415(c)(1) provides:                                                 
               Contributions and other additions with respect to a                    
               participant exceed the limitation of this subsection                   
               if, when expressed as an annual addition (within the                   
               meaning of paragraph (2)) to the participant's account,                
               such annual addition is greater than the lesser of --                  
                         (A) $30,000,[3] or                                           
                         (B) 25 percent of the participant's compensation.            
          Section 415(c)(2) provides that "annual addition" means the sum             
          for any year of--                                                           
               (A)  employer contributions,                                           

               3  Sec. 415(c)(1)(A) was amended by the Tax Reform Act of              
          1986, Pub. L. 99-514, sec. 1106(a), 1106(i), 100 Stat. 2420,                
          2425, effective for years beginning after Dec. 31, 1986, to read            
          "$30,000 (or, if greater, 1/4 of the dollar limitation [$90,000]            
          in effect under subsection (b)(1)(A))".  It was further amended             
          to eliminate the parenthetical language effective for years                 
          commencing after Dec. 31, 1994.  Uruguay Round Agreements Act,              
          Pub. L. 103-465, sec. 732(b)(2), 108 Stat. 5005 (1994).                     

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