Dell 2003 Annual Report Download - page 138

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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 Code Section 415(c)(3). The
determination of who is a key employee will be made in accordance with Code Section 416(i)(1) and the applicable regulations and other guidance
of general applicability issued thereunder.
(b) The following provisions 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.
(1) 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 Code Section 416(g)(2)
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 Code Section 416(g)(2)(A)(i). 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."
(2) 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.
(c) Matching contributions. Employer matching contributions shall be taken into account for purposes of satisfying the minimum contribution
requirements of Code Section 416(c)(2) 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 Code Section 401(m).
18.5 Amendment to Direct Rollover Rules.
(a) For purposes of the direct rollover provisions of the Plan, an eligible retirement plan shall also mean an annuity contract described in Code Section
403(b) and an eligible plan under Code Section 457(b) 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 distribution to a surviving spouse, or to a
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