This excerpt taken from the SAF 10-K filed Feb 28, 2008.
Maximum Annual Additions to Accounts
For purposes of this Section 5.9, the Company and any Affiliate shall be considered a single employer, to the extent required by the Code.
Except to the extent permitted under Section 4.1(d) and Code Section 414(v), notwithstanding any other Plan provision to the contrary, the Annual Additions to a Participants Accounts in the Plan and any other defined contribution plan maintained by the Company or any Affiliate for any Plan Year shall not exceed the lesser of (i) 100% of the Participants Section 415 Compensation, or (ii) $40,000. The Plan Year shall be the limitation year for purposes of Treasury Regulation Section 1.415(j)-1 and applying the limits of this Section 5.9. If there is a short Plan Year because of a change in Plan Year or if the Plan is terminated effective as of a date other than the last day of the Plan Year, the $40,000 dollar limit (as adjusted) shall be prorated under the short limitation year rules.
For purposes of this Section 5.9, the term Annual Additions for any Participant in any Plan Year means the sum of:
The $40,000 limit prescribed above shall be automatically adjusted for cost-of-living increases, to the maximum permissible dollar limitation determined by the Commissioner of Internal Revenue. The dollar amount applicable in computing the maximum contribution for any Participant shall be the dollar amount in effect for the calendar year in which the contribution is made.
If for any Plan Year the Annual Additions exceed the foregoing limitations, then the Plan shall correct such excess in accordance with the Employee Plans Compliance Resolution System (EPCRS) as set forth in Revenue Procedure 2006-27 or any superseding guidance, including, but not limited to, the preamble to the final Section 415 Treasury Regulations.