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pam@bbm

Match wasn't capped

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I have a plan with a discretionary match that is calculated and deposited each payroll.     At the beginning of the year the board of directors elected to cap the match at 15% of compensation.      The payroll department didn't apply the 15% cap and 3 participants received excess match - 2 of them $4000 and $6000.         Is the cure for this error to forfeit the excess?    

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Yes if the board resolution amounts to a plan amendment, which it probably does, but opinions may differ and would depend on documentation and surrounding facts and circumstances.

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