JKW Posted July 28, 2014 Share Posted July 28, 2014 A plan had a missed deferral opportunity - which they corrected with the 50%,etc. There is a lost earnings amount of approx. $50. Is it ok if they plan takes is from the forfeiture account? I think not but I am seeing conflicting info. Their document states forfeitures can be used to offset plan expenses and reduce employer contributions. Thoughts? Link to comment Share on other sites More sharing options...
austin3515 Posted July 29, 2014 Share Posted July 29, 2014 I don't recall, but a) I think EPCRS will say and b) will it make any difference? I mean, are there other employer contributions that can be offset, thus making it a zero sum decision? So if the employer uses the $50 in forfeitures to reduce this correction or $50 to reduce the match, the employer still saves $50. I generally try to avoid answers like this that don't answer the question posed, but I went and did it anyway... Austin Powers, CPA, QPA, ERPA Link to comment Share on other sites More sharing options...
austin3515 Posted July 29, 2014 Share Posted July 29, 2014 I felt bad, so I went looking for the answer: Section 6.02(4)© in EPCRS For some strange reason I cannot copy and paste... I typed in this link, so you might have to copy and paste to your browser... www.irs.gov/irb/2013-04_IRB/ar06.html Short answer is that you can use forfeitures towards the correction if forfeitures can be used to offset employer contributions. Austin Powers, CPA, QPA, ERPA Link to comment Share on other sites More sharing options...
BG5150 Posted July 29, 2014 Share Posted July 29, 2014 I thought you couldn't use forfeitures to offset a QNEC. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
John Feldt ERPA CPC QPA Posted July 29, 2014 Share Posted July 29, 2014 Under 2013-12, I think they limited that restriction to just QNECs for ADP/ACP test corrections. Link to comment Share on other sites More sharing options...
JKW Posted July 29, 2014 Author Share Posted July 29, 2014 Thank you austin3515. Link to comment Share on other sites More sharing options...
masteff Posted July 29, 2014 Share Posted July 29, 2014 For some strange reason I cannot copy and paste... http://benefitslink.com/boards/index.php?/topic/55213-cant-quote-or-paste-or-cant-edit-a-new-post-heres-how/ Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra Link to comment Share on other sites More sharing options...
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