I am swirling in a little confusing.
We have a employee that is in two unrelated plans that we administer. Because we administrate both plans, I can see that he deferred 24,000 in Plan A, and 350.00 in Plan B.
My original thought was to distribute the 350.00 as a 402g error and be done with it. (We did email the employee and let him know the error) But, being the deferrals are in two unrelated plans, am I needing direction from the employee? What's the deal with the March 1 deadline in the plan document?
What if I never knew the 350.00 deferred to Plan B? I'd move forward like normal....
Do I cut a check for 350 plus earnings, issue 1099-R for 2017 and be done with this?
What are your thoughts?