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calculating earnings on missed contribution


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Posted

Profit sharing plan omitted a participant in error.

Per APRSC guidelines, the participant should be credited with a contribution and associated earnings.

The plan has segregated accounts.

How do i credit earnings? Would an average of the rate of return on the seg. accounts suffice?

Thanks in advance!

Posted

Look at the recently released Rev Proc 99-31, it gives examples of acceptable methods of caculating earnings on corrective contributions.

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