k man Posted September 6, 2001 Posted September 6, 2001 I know 2001-17 outlines several methods concerning how to allocate lost earnings when utilizing various correction methods; however, what about losses? Obviously in light of current market performance, a participant would have been hard pressed to earn a positive return (at least for the past 18 months). Do you just give them a money market rate of return or do you use the statutory rate similar to the DOL method?
Kirk Maldonado Posted September 6, 2001 Posted September 6, 2001 If you want to be creative, I suggest that you effectuate the correction via VCR or CAP; to get the IRS blessing of your methodology. Kirk Maldonado
Guest Bandb Posted September 7, 2001 Posted September 7, 2001 Losses are addressed in 2001-17, Part III, Section 6.4, although I don't understand what is being said. "Corrective allocations under a dc plan...should be adjusted for earnings (including losses) and forfeitures..." Then later in the same paragraph: "The corrective allocation need not be adjusted for losses." Can anyone explain the treatment (or non-treatment) of losses, especially with regard to this section of the revenue procedure?
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