Guest Christine Posted April 14, 1999 Posted April 14, 1999 How does one remove excess contributins from a 403(B) plan? Are earnings on the excess distributions removed from the plan? If earnings must be withdrawn, how are they calculated? Cites not required but would be helpful
Guest CVCalhoun Posted April 15, 1999 Posted April 15, 1999 Check out Treas. Reg. § 1.402(g)-1; it has all the gory details. ------------------- Employee benefits legal resource site
Guest Christine Posted April 16, 1999 Posted April 16, 1999 Thanks you for your input. I also found Section 4 of Rev. Proc. 99-13 helpful.
MWeddell Posted April 16, 1999 Posted April 16, 1999 The answer depends on why the contributions are in excess of legal limits. If the contributions exceed the 403(B) maximum exclusion allowance, there are no provisions for distributing the excess amounts. If the contributions exceed the 402(g) limit (the $10,000 limit on deferrals, subject to catch-up elections which may raise it to $13,000 annually), then take a look at the regulation cited in CVCalhoun's post above. However, the time limit is April 15, so you might be too late. If the contributions exceed the 415 limit, the limit on annual additions, then under certain circumstances they may be distributed. Reg. 1.415-6(B)(6). There's no time limit for these distributions.
Guest RMassa Posted June 21, 2001 Posted June 21, 2001 Mr Weddell: Has there been any change on provisions for correcting contributions that exceed the Maximm Exclusion Allowance since you posted this reply?
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