When running a 402g test, are you testing contributions with payroll dates for the testing year?
For example, I have a 2003 deferral (12/23/03 payroll date) that wasn't processed until March 2004. Should this deferral be included in my 2003 402g test?
Thanks.
402g test
Started by
Achilles
, Apr 07 2004 10:22 AM
2 replies to this topic
#2
Archimage
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Posted 07 April 2004 - 10:42 AM
I am assuming that "processed" means they didn't actually send the deferrals to the trust until 3/04. These would be included in the 402(g) limit since they are included on their W-2s.
The employer will also have to make up lost earnings for late deferrals, file Form 5330 with excise tax, etc.
The employer will also have to make up lost earnings for late deferrals, file Form 5330 with excise tax, etc.
#3
Tom Poje
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Posted 07 April 2004 - 10:56 AM
and remember, the govt is going to look at the person's w-2.
if it is more than the 402(g) limit they will tax, whether you distribute the $ or not.
you only have a few days left to fix that.
and if you don't, then when the person takes an actual distribution, he will be taxed again.
if it is more than the 402(g) limit they will tax, whether you distribute the $ or not.
you only have a few days left to fix that.
and if you don't, then when the person takes an actual distribution, he will be taxed again.
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