Guest BillClinton Posted October 10, 2002 Posted October 10, 2002 I'm posting this here for a money purchase pension plan because I didn't see a forum for MPPPs. We just started working with a client that has a MPPP and they overfunded the employer contributions by about $250k about 3 years ago and they left the money in the plan. Was that excess contribution supposed to have been retuned to the sponsor 2 1/2 months after the year end when the excess contribution was made? Are they subject to an excise tax? Thanks for your help
david rigby Posted October 10, 2002 Posted October 10, 2002 Why did they "overfund"? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Guest BillClinton Posted October 10, 2002 Posted October 10, 2002 Because they're not very bright. They really just dumped a ton of money into the plan apparently disregarding instructions from their TPA. I suppose you can call it a clerical error.
david rigby Posted October 10, 2002 Posted October 10, 2002 Those are two different things. Is there a legitimate "mistake of fact"? Oh wait, does not matter, since you said it was three years ago. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Blinky the 3-eyed Fish Posted October 10, 2002 Posted October 10, 2002 Can you give more details as to the minimum funding requirements for each year and when they made contributions? Start with the year of overfunding. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
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