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Showing results for tags 'late match'.
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I have an audit plan and they made 1 late discretionary matching deposit in 2016. It was 2 weeks late due to a glitch in their payroll system. Their plan document was amended to allow matching contribution, made on an a payroll basis, as of 2/1/2016. All their 401k deposits are fine. CPA wants them to go through SCP or VCP in case the plan ever gets audited. And he wants us to submit a letter stating that this is not an operational failure in case they get audited in years to come. I'm thinking neither is necessary. Is this an operational failure? Thanks in advance!
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Generally, I work on DB plans, so forgive a naive question. A 401(k) plan with matching by pay period has turnover in their HR department and some match deposits get missed. Later the TPA notes the failed match, and wants to make corrections. The issue is not resolved until 20+ months after the due date, but finally paid, voluntarily without govt direction. How does this get reported for IRS, DOL and 5500 purposes? What happens to the excise tax (under $100), specifically as to paying it to IRS or to participants? Any help would be appreciated.
