Guest fusiuser Posted March 3, 2000 Share Posted March 3, 2000 What has to be done (tax, penalties, etc) if an employer was withholding employee deferrals but never made the deposit into each acct and now wants to do a lump sum deposit upon "discovering mistake"? I know they have to make the deposit and include earnings but do they notify IRS and what fees and penalties will apply? ANy info would be appreciated. Link to comment Share on other sites More sharing options...
Gary Lesser Posted May 17, 2000 Share Posted May 17, 2000 Under IRS rules they are timely. A procedure was announced on March 15 bty the DOL - access on Benefitslink the March 15 Federal Register page 14164 (fill in both areas, but use the to button to get there). Link to comment Share on other sites More sharing options...
Bill Berke Posted June 2, 2000 Share Posted June 2, 2000 Gary is correct. You may want to review the DOL's recently announced VFC program. That proposal contains the fiduciary corrections required by the DOL in this situation. It will give you the correction method path to follow to protect the fiduciaries of the plan and to make the participants whole. [This message has been edited by Bill Berke (edited 06-02-2000).] Link to comment Share on other sites More sharing options...
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