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Were the deductions for 401k deferrals or for other payroll deductions that come out of the 401k earnings definition? Otherwise this scenario doesn't make sense to me! Or are you saying the match formula (or earnings it is calculated on) isnt' the same formula for the deferrals? So you match more on those that defer less? I hope not... Honestly I haven't seen any plan where the match compensation is different from the deferral compensation! I guess I am not understanding how your deferrals could be correct and your match could be wrong (While I don't support payroll companies doing 401k administration, I strongly support someone in HR/Benefits checking payroll registers for deductions/earnings that affect the plans they administer! I always wonder how it takes 6 months to find an error. But I guess because I am over both HR and payroll, I tend to review them from both viewpoints and never assume payroll has anything correct without confirmation!)

I go on the assumption that payments to active employees for such things as minimum distributions or plan termination distributions are exactly the sorts of amounts that the rules were drafted to require adding back in.

Happy 11/13/15. It's the last "consecutive odd number" date this century. [i agree that I'm straining to make something significant out of the date. Kind of like the useless statistics that announcers and commentators now spout before, during, and after sporting events.] Have a great day, and May the oddness be with you.

Oh, the oddness is with me all right. Deeply ingrained, in fact. If I had been Homer, I'd have written the Iliad and the Oddity.

If too much was contributed, why is there any corrective contribution?