Guest hog4you2 Posted February 14, 2005 Posted February 14, 2005 I have a SHM plan that has an annual calculation method, but company makes deposits through payroll throughout the year. They incorrectly calculated the SHM for 2 people and over-deposited. Is this returnable to the company as an operational error or does it have to be transferred to suspense-type acct? The document is silent on this since it written in "annual" language. thanx!
austin3515 Posted February 15, 2005 Posted February 15, 2005 Best practice is to forfeit, and use it next year. That is unless the amount due to other participants is greater than what these 2 were overpaid. Austin Powers, CPA, QPA, ERPA
Guest Pensions in Paradise Posted February 15, 2005 Posted February 15, 2005 Does the plan document provide for discretionary company profit sharing contributions? If it does, then I would make the argument that you would have to allocate the excess amounts as profit sharing contributions.
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