Jakyasar Posted March 17 Report Share Posted March 17 Hi A client who uses their DC plan as a QRP made a big booboo last year which I just found out. For 2021, they used 65k of the QRP as mandated (1/7th) and allocated from the suspense account to the individual account in 2022. No problem for 2021. However, unbeknownst to me, later in 2022, the client deposited 60k in their account (owner only) by mistake, it was not intended as they are fully aware of the QRP requirements. For 2022, according to the suspense account balance and 1/6th rule, they need to use 60k of the QRP. Given that this is 3 person pension plan, is there a way to correct this i.e. client refunds the deposit made in error during 2022 with interest adjustment back to the biz account? I do not see how but...... Otherwise, as the owner is almost at 415c limit, the 60k pretty much will have to be allocated to the 2 rank&file employees (both make 50k in salary and unfortunately one of them is the spouse of the owner aka HCE). I have never seen this before in all my dealings with QRP and wanted to ask if there is a way to correct this, something I may have missed? Thank you Link to comment Share on other sites More sharing options...
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