Jump to content

Unintended deferrals


Recommended Posts

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

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...