Guest mmc Posted February 24, 2005 Posted February 24, 2005 A participant terminated in Ocotober 2004 and received a distribution in 2004. It was just discovered that her last deferral had not been remitted to the plan. When this was communicated to the plan sponsor, he issued a check to her rollover IRA instead of depositing it into the trust. Can this be construed as a 2004 contribution and a 2005 distribution?
austin3515 Posted February 28, 2005 Posted February 28, 2005 It could be construed as the participant's deferrals never being remitted. Nothing was owed to the IRA - it was owed to the Plan. But if you keep real quiet, maybe it'll be okay... Sometimes the cost of correcting insignicant things is significant and at some point you just have to let it go. Maybe you want to get some lost earnings paid though? Austin Powers, CPA, QPA, ERPA
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