Guest Laura A Anderson Posted June 18, 2002 Posted June 18, 2002 I know under PLR 9530038 that deferrals can be made to a NQ Deferred Comp Account, and then the appropriate amount moved to a qualified plan after ADP/ACP testing is complete. My question is this - can the reverse happen? Can excess contributions (as a result of ADP/ACP failure) be moved to a NQDCA post-testing? I'm thinking the answer is no, but don't have the official authority. Any thoughts? Cites would also be appreciated (if they're available!) Thanks!
E as in ERISA Posted June 20, 2002 Posted June 20, 2002 I agree with your conclusion. I don't have cites. But I believe that the 95 PLR may have been the first allowing that and that there were pre-1995 PLRs that said that you couldn't take the money out of the 401(k) and move it into a deferral.
Kirk Maldonado Posted June 20, 2002 Posted June 20, 2002 IRS representatives have publicly stated that it doesn't work. Kirk Maldonado
Guest Laura A Anderson Posted June 20, 2002 Posted June 20, 2002 Thanks for the responses. This was for a client who wouldn't just accept "no." He wanted something more concrete. This should help!
E as in ERISA Posted June 20, 2002 Posted June 20, 2002 IN PLR 9414051 the IRS revoked PLR 9317037, in which it had indicated that the other approach worked.
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