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© 2019 Hitesman & Wold, P.A. MEDSURETY, LLC Cafeteria Plan 1-888-816-4234, www.medsurety.com Basic Plan Document 36 (b) The actual or deemed Earned Income of the Participant’s Spouse for the tax year; or (c) $5,000 (or in the case of a Participant who is m arried and filing a separate income tax return from his or her Spouse, $2,500). This maximum includes the Employer Contribution, if any, DC Account forfeitures and the Participant’s salary reduction. If a Participant is married and the Spouse of the Parti cipant also participates in a dependent care program under Section 129 of the Code, the combined reimbursements may not exceed the limits described above for t he tax year. It shall be the Participant’s responsibility to monitor the combined reimbursements. 10.9 Reimbursement Upon Termination of Participation. If an individual ceases to be a Participant in this portion of the Plan during a Plan Year, no further cont ributions will be credited to the DC Account. Reimbursements shall continue as provided in the Adoption Agreement. 10.10 Participant’s Death. In the event a Participant dies having incurred an eligible Dependent Care Expense which (a) would have been reimbursable out of the Participant’s DC Account had the Participant not died, and (b) for which a person or the Participant’s estate has paid for or assumed liability for the expense, reimbursement may be made to that person or the estate for that payment or assumption. The remainder of the Participant’s DC Account shall be forfeited in accordance with Section 5.7. 10.11 Nondiscrimination. Not more than twenty-five percent (25%) of the amounts paid or incurred by the Employer for dependent care assistance during the Plan Year shall be provided to Participants who are shareholders or owners (or their Spouses or Ta x Dependents) of more than five percent (5%) of the stock or of the capital or profit interest in the Employer. This portion of the Plan shall not discriminate in favor of Highly Compensated Employees or their Dependents with respect to eligibility, contributions or benefits. The average eligible Dependent Care Expenses paid to Non-Highly Compensated Employees shall be at least fifty-five (55%) of the average eligible Dependent Care Expenses paid to Highly Compensated Employees. If benefits are provided through salary reduction agreements, Employees with annual compensation less than $25,000 may be excluded. If the Plan Administrator determines that the Plan i s or will be discriminatory, the Plan Administrator may take any action permitted by law to avoid such result in accordance with Section 6.16. 10.12 DC Account Forfeiture. (a) Grace Period. If selected in the Adoption Agreement, the Grace Period shall apply to this Optional Benefit. (1) Length. For purposes of determining whether an expense may be reimbursed from a Participant’s DC Account, an expense incurred prior to the fifteenth day of the third calendar month following the close of the Plan Year (or such othe r date provided in the Adoption Agreement) shall be deemed to have been incurred for purposes of both the preceding Plan Year and the current Plan Year. Such period of time shall be referred to as the “Grace Period.” (2) Processing of Claims. Claims incurred during the Grace Period, and submitted prior to the close of the Claims Run-out Period, shall be first allocated to and reimbursed from the Participant's DC Account for the preceding Plan Year until such DC Account is exhausted. Thereafter, any such claims shall be allocated to and reimbursed from the Participant’s DC Account for the current Plan Year. Claims incurred during the Grace Period will be allocated based upon the date the claim is received. Once a claim is allocated, there shall be no chang es,