Guest jim williams Posted March 20, 2003 Posted March 20, 2003 If permissable under the plan document, can the tax imposed under Section 4979 for excess deferrals/match refunded from a 401(k) plan after the 2 1/2 month deadline be paid from the plan's forfeiture account?
jaemmons Posted March 20, 2003 Posted March 20, 2003 No. The excise tax imposed by IRC 4979 is borne by the employer and not the plan.
jaemmons Posted March 20, 2003 Posted March 20, 2003 No. The excise tax imposed by IRC 4979 is borne by the employer and not the plan.
jaemmons Posted March 20, 2003 Posted March 20, 2003 No. The excise tax imposed by IRC 4979 is borne by the employer and not the plan.
Guest jim williams Posted March 20, 2003 Posted March 20, 2003 Couldn't you argue that the Forfeiture account is used to offset employer costs?
Steve72 Posted March 20, 2003 Posted March 20, 2003 Only if you also want to pay another excise tax under Section 4975.
Mike Preston Posted March 20, 2003 Posted March 20, 2003 I'll go futher than Steve. You can argue it, but only if you want to eventually end up with a disqualified plan.
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