Posted 18 February 2002 - 10:21 AM
Posted 19 February 2002 - 11:29 PM
Posted 07 March 2002 - 04:46 PM
% or $ is deducted from compensation before taxation, but after FICA withholdings on a per pay basis, and shown on the employee's pay stub. Therefore, one could interpret that to mean contributions from an employee's pay, but treated as an employer contribution.
If participation is required when eligible, and eligible employees were not enrolled into the plan until a year after meeting eligibility requirements, obviously their accounts should be made whole as if they had been enrolled in a timely manner. To simply start from the date of discovery would deny each participant a years worth of contributions and gain/loss that they were entitled to as a benefit .
Since, in reality, the 414(h)(2) employee contribution reduces the employees compensation, who is obligated to make up the 414(h)(2) back contribution. If the employer makes it up, they have, in essence given the employee a pay raise for the previous time frame, and then a pay reduction from the date of discovery.
Am I wrong in my analysis?
Posted 07 March 2002 - 11:02 PM
Posted 08 March 2002 - 10:54 AM
Any additional response is appreciated.