Incorrect Elective Deferral

    AAS2
    By AAS2,
    An ER incorrectly contributes to a 401(k) plan an amount that is in excess of the amount that the EE elected. This happens once, and the correct amount is withheld and contributed in the next payroll period.  The error appears to have been made when the first deferral election on file was not cancelled after a second deferral election was made. What is the best way to make the correction?  Should the amount be returned to the EE from the plan (as compensation)?  I can find nothing in EPCRS that addresses this situation.  There is no excess deferral, just a one-time human (or perhaps computer) error.    

    Coverage / Q'ly Discretionary Match

    austin3515
    By austin3515,
    Question:  Plan has a quarterly matching contribution with a requirement that participants must be employed on the last day of the quarter to get the match for that quarter. Problem is they might match one or two quarters during the year. Anyone have any suggestions for how to run coverage?  Can I treat anyone employed on 3/31/2016 as benefitting in the Plan, even if there was no match in that quarter?  What is someone terminated 4/15/2016, but there was no match until the 3rd quarter? Can I treat that employee as benefitting?  

    FSA & Now HSA

    coleboy
    By coleboy,
    One of our clients has an FSA where they contributed a certain dollar amount for each employee regardless of whether they enrolled in the FSA or not. Now we have found out that they have an HSA. Without telling us, they have been putting that employer contribution into the account of anyone who has the HSA. We have still been putting that employer contribution into that FSA for everyone. The employer is not happy! Can the employer choose where she wants to make that employer contribution on an employee by employee basis? That is, if she decided she's funding the FSA, doesn't she need to fund it for everyone? Can she fund it only for those who aren't in the FSA? Also, because there is an HSA, can't she only have a limited FSA? Or can she have 2 FSA's? The limited one for those employees with the HSA's and a full FSA for those who do not have the HSA.    

    safe harbor 3% cross tested plan

    Pixie
    By Pixie,
    I have a plan that does the 3% safe harbor and also has the option for discretionary.  If we give the staff 3% can we give the highly compensated 9% (the 3% base plus 6% discretionary?).   The plan passes Top Heavy due to the 3%, the Gateway test due to the 1/3rd rule and also passes the 401a4. Thank you for your help!

    Amend to QDRO

    Leonor Silva
    By Leonor Silva,
    I have no clue about what to do and can't afford an attorney. In my decree, it stipulates 50%, my problem he is deceased. Which, I have to amend the drafted QDRO stipulate the marriage time and deceased date. How do I amend the QDRO? I am spending too much time on something possibly easy to do. Please help! 

    Does a 1099-R force a paper 1040 filing?

    AlbanyConsultant
    By AlbanyConsultant,
    I've got a participant's CPA who is saying that because we haven't electroncially filed the 1099-Rs yet, if his client electronically files their 1040 it will bounce because there is no 1099-R at the IRS to match it up to.  I don't think I've ever heard of this before - is this is thing?  Thanks.