401k plan match was provided in 2023 when participant wasn't yet eligible (90 day mark wasn't hit until Jan 2024).
Participant has been advised that a year timeframe is when it was supposed to be corrected, they were advised that ERISA guidelines do in fact apply to ERCPS in this case, and that the timeframe for adjustments has passed.
Plan admin is advising that an “excess allocation” which must be corrected in accordance with section 6.06(2). An Excess Allocation is corrected in accordance with the Reduction of Account Balance Correction Method set forth in this paragraph. Under this method, the account balance of an employee who received an Excess Allocation is reduced by the Excess Allocation (adjusted for Earnings).
Who is right?
And furthermore if the correction is to be made, is the proper method to pull distributed funds from the account immediately?
