Excess match & deminimus distribution of $50

[alexa]

I have 3 individuals with an excess match for 2007- we match each weekly payroll and the payroll in which they got their bonus last Dec which brough tthem to their deferral max of 15500, gave them the match on whole pay for that week

1 person has 12 cents, another $8 and a third $1,000

All 3 are HCE

Can I just distribute the $1,000 nad treat the other 2 as < $50 deminimus rule under the ECPRC procedure

I esp do not want to forfeit 12 cents from our CFO's account<gr>

thanks

[BG5150]

Letter of the says you can use the de minimis rule if the costs of doing the "distribution" would be greater than what is being "distributed." Plus, after Sept. 1, 2008 you can use the updated EPCRS (2008-50) which ups the minimum to $75.

Providing that if the total corrective distribution due a participant or

beneficiary is $75 or less, the Plan Sponsor is not required to make the

corrective distribution if the reasonable direct costs of processing and

delivering the distribution to the participant or beneficiary would exceed the

amount of the distribution. (section 6.02(5)(b))

[alexa]

Letter of the says you can use the de minimis rule if the costs of doing the "distribution" would be greater than what is being "distributed." Plus, after Sept. 1, 2008 you can use the updated EPCRS (2008-50) which ups the minimum to $75.

Providing that if the total corrective distribution due a participant or

beneficiary is $75 or less, the Plan Sponsor is not required to make the

corrective distribution if the reasonable direct costs of processing and

delivering the distribution to the participant or beneficiary would exceed the

amount of the distribution. (section 6.02(5)(b))

There would be no cost from our recordkeeper to forfeit the excess . What about the theoretical cost of my time to fill out the service request & communicate to the participant<gr>

I definitely do not think 12 cents is worth doing this for even though "direct" cost