eTrade 2008 Annual Report Download - page 201

Plan. If the Employer Contribution that would otherwise be contributed or allocated to the Participant’s Account would
cause the Annual Additions for the Limitation Year to exceed the Maximum Annual Addition, the amount contributed or
allocated shall be reduced so that the Annual Additions for the Limitation Year will equal the Maximum Annual Addition.
(c) Prior to determining the Participant’s actual Compensation for the Limitation Year, the Employer may determine the
Maximum Annual Addition for a Participant on the basis of a reasonable estimation of the Participant’s Compensation for
the Limitation Year, uniformly determined for all Participants similarly situated.
(d) As soon as is administratively feasible after the end of the Limitation Year, the Maximum Annual Addition for the
Limitation Year will be determined on the basis of the Participan
t
’s actual Compensation for the Limitation Year.
(e) If as a result of a reasonable error in estimating a Participant’s Compensation for the Limitation Year, a reasonable error in
determining the amount of elective deferrals (within the meaning of Code Section 402(g)(3)) that may be made with
respect to any individual under the limits of Code Section 415, or under other facts and circumstances allowed by the
Internal Revenue Service, there is an Excess Amount, the excess will be disposed of as follows:
(1) Any Elective Deferral Contributions that are not the basis for Matching Contributions (plus attributable earnings), to
the extent they would reduce the Excess Amount, will be distributed to the Participant. The distribution of Elective
Deferral Contributions shall be made on a pro rata basis from the Participant’s Account resulting from Pre-tax
Elective Deferral Contributions and Roth Elective Deferral Contributions in the same proportion that such
Contributions were made for the applicable year.
(2) If after the application of (1) above an Excess Amount still exists, any Elective Deferral Contributions that are the
basis for Matching Contributions (plus attributable earnings), to the extent they would reduce the Excess Amount,
will be distributed to the Participant. The order of distribution of Pre-tax Elective Deferral Contributions and Roth
Elective Deferral Contributions shall be made as provided in (1) above. Concurrently with the distribution of such
Elective Deferral Contributions, any Matching Contributions that relate to any Elective Deferral Contributions
distributed in the preceding sentence, to the extent such application would reduce the Excess Amount, will be
applied as provided in (3) or (4) below:
(3) If after the application of (2) above an Excess Amount still exists, and the Participant is covered by the Plan at the
end of the Limitation Year, the Excess Amount in the Participant’s Account will be used to reduce Employer
Contributions for such Participant in the next Limitation Year, and each succeeding Limitation Year if necessary.
(4) If after the application of (2) above an Excess Amount still exists, and the Participant is not covered by the Plan at
the end of the Limitation Year, the Excess Amount will be held unallocated in a suspense account. The suspense
account will be applied to reduce future Employer Contributions for all remaining Participants in the next Limitation
Year, and each succeeding Limitation Year if necessary.
RESTATEMENT DECEMBER 15, 2006
34 ARTICLE III (5-19047)