Attributable Match

[Guest At Peace]

It has been suggested that you can not accurately determine the attributable match on plans that specify that the match contribution is calculated and deposited on a payroll basis. Therefore, when the ADP fails and attributable match is an issue, it cannot be forfeited.

Do you agree/disagree? Why?

[Guest Tinman42]

We do check to be sure no one exceeds the formula for per-payroll match. What you cannot accurately do is check to see if anyone was under-matched during the year.

As far as match attributable to Excess Contributions (ADP failure), our legal eagles have instructed us to calculate match to be forfeited should the new contribution amount after excess be under the match cap. This match is then forfeited and used to reduce future employer contributions.