401kmaurice
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Question regarding excise tax and correction QNEC
401kmaurice replied to 401kmaurice's topic in Correction of Plan Defects
Thanks very much for the responses. Employer did deposit corrective QNEC and missed earnings timely. -
We have a client that did not use the correct compensation when deducting deferrals, which also affected their match allocation. The QNEC and earnings corrections have been deposited for all participants. The question is, is this situation a reportable event on Form 5330 Section 4975? If so, is it 15% of lost earnings?