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Showing results for tags '401(k) correction'.
Found 2 results
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Plan recently discovered 5 or 6 people who had requested deferral percentage reductions that were never implemented. Most are short term, but others go back several years. None of the participants has noticed the error. Client wants to notify the participants and ask them if they want to take the money out of the plan (including match and income) or leave it in. Not sure that this is permissible. Haven't run into this particular failure before, and cannot find anything terribly helpful in EPCRS. My inclination would be to forfeit all if they want to correct, and pay the lost salary outside of the plan.
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Safe harbor 401(k) Plan, 1owner, 5 staff. Discrepancy exists for 401(k) deposits only for owner back to 2014. Owner ran payroll as if one amount was being deposited each time, but actual deposit made was less. Taxes were filed as if the larger amount was deposited. (Example - W-2 showed $10,000 but 401k trust received $5,000) Contemplating best means to correct - owner would like to make late deposits on own behalf, rather than refile personal/business taxes.
