Newbie here, hoping for some help on ineligible deferrals. Our company issued ineligible deferral refunds this year. The explanation we were given is that "one or more plan participants made ineligible ROTH salary deferrals under the profit sharing plan." Refund checks issued April 13, 2017.
Our company is owned by two individuals. Both are at least age 62, for what that's worth.
The majority of our employees do not participate in the plan. The few rank and file employees who do participate received checks for matching contributions. The 402(g) violation return summary shows a few different numbers: excess deferrals, gain on excess deferrals, return of gap period interest; total amount return gain; and total amount to be paid.
Might anyone be able to advise on what likely happened here? Is this an HCE type violation? Or could it be from not matching by the safe harbor deadline?
Thank you.
