Guest yvonne001 Posted May 10, 2004 Posted May 10, 2004 A profit sharing plan has a last day rule. An employee who was not employed on the last day was given an employer contribution. The plan uses new comparibility rules to allocate the contribution. Therefore, this was just additional money deposited to the plan unneccessarily. To correct can I leave the contribution in the plan assets and use it to reduce the employer contribution for the next plan year? I don't see any reference of how to correct in the plan doc.
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