30Rock Posted December 30, 2010 Report Share Posted December 30, 2010 Here is situation - tax exempt sponsor has 2 plans, a 401k with a match and then a voluntary 403b. The HCE's are capped at 6% in the 401k, they can then defer additional amounts into the 403b plan. The enrollment team mistakenly enrolled a group of NHCEs into both plans however employees only wanted to defer into the 401k. How can we get the deferrals out of the 403b plan, with no distributable event? They are not ineligible employees, they were mistakenly set up under this plan. I cannot see an exact correction method under EPCRS. Think we should be able to distribute deferrals plus earnings as 1099 income? Link to comment Share on other sites More sharing options...
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