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Excess Deferral


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Guest Giovanni
Posted

I know this seems insignificant, yet I was wondering what others would do in a similar situation. An employee in a 401(k) plan who is over age 50 deferred $16,000.14 in 2004. Should I ignore it? Tell the Employer to refund $.14? Where do you draw the line? $.01? $.14? $.50 $1.00?

Guest annieap1
Posted

I may be off base, but if you rounded all the deferrals for testing purposes, then you wouldn't have an issue because you would round down to $16,000. Personally, I wouldn't be concerned about returning $0.14.

Posted

The interesting question for me is what happens if the employer puts $16,000.14 in Box 12 of the W-2.

RCK

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