Archimage Posted February 24, 2003 Posted February 24, 2003 MPP is overfunded by a mistake of fact. The plan has terminated. Would you agree that the overfunded amount can be refunded to the ER?
Kirk Maldonado Posted February 25, 2003 Posted February 25, 2003 The IRS has extremely stringent standards for determining what qualifies as a "mistake of fact." Very few things qualify. What was the mistake of fact? Kirk Maldonado
Archimage Posted February 25, 2003 Author Posted February 25, 2003 The ER just wasn't too bright and put in the wrong amount. Even if it is not a mistake in fact, what would be the correct way to handle in each case?
jaemmons Posted February 25, 2003 Posted February 25, 2003 Was the overfunding in excess of the 25% deduction limit?? If not, you may be able to retroactively amend the plan to provide for a pro rata increase in benefits to possibly absorb the excess. I agree with Kirk in that you cannot just declare a "mistake in fact" and forward a check back to the employer.
Archimage Posted February 25, 2003 Author Posted February 25, 2003 No, the 25% limit was not exceeded, just the MPP imposed limit in the doc. I agree that the ER should not declare "mistake of fact" without legal counsel. However, the ER will probably still decide to do this since the plan is now terminated. I am trying to give the ER all possible scenarios in order for him to make an informed decision.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now