My employer notified me that they had mistakenly limited my total eligible contributions at $56,000 instead o f$62,000 (I am 60 and maxing out after-tax) for 2019 and did not withhold my contribution for two pay periods - 11/28 and 12/13. The first was before the error was discovered, and the second was after the discovering the error and notifying me. Unfortunately for reason I am not aware of, they did not update the payroll system for the second pay period resulting in the second missed contribution. I have one more contribution opportunity for the year (12/27). My employer claims that they are only required to make a contribution of 25% of the missed contributions which were mistakenly not made. This amount, combined with a maximum deferral on my part on 12/27 will leave me short for 2019 by $1,049. I am trying to find which section of this https://www.irs.gov/pub/irs-drop/rp-18-52.pdf applies to my case. I see some cases that might apply and put them at 40% instead of 25%. Any pointers would be appreciated.
Also, are these percentages specific amounts required and that cannot be exceeded, or are employers allowed to make up the missed deferrals beyond the prescribed percentages if they choose?
Thank you - Harry
