Timing of Refunds of Excess Contributions

[Guest k_bo]

OK, when determining whether or not a refund has been processed prior to March 15, does the IRS look at the date of the check to the participant OR the day the amount was withdrawan from the plan assets?

Ex. withdrawal made 03/13 but the check is dated and mailed 03/17.

[Guest k_bo]

No pressure here...but my dignity is at stake.

[Belgarath]

Cheer up - if you are involved in this business for long, you won't have any dignity left anyway.

I'm a little puzzled by the time gap between withdrawal and a check being issued. How did this transaction work? For example, if mutual funds were liquidated on 3/13, and the money deposited to the Trust checking account for subsequent distribution to the participant, then I'd vote for the 3/17 date as it is still a Trust asset on 3/15.

[WDIK]

There may be some other issues here. Who issued the 3/17 check, if it was not the plan? Please describe your scenario in more detail.

EDIT: (Sorry for duplicating Belgarath's thoughts. I've got to stop letting work interrupt me during the middle of my posting.)

[Guest k_bo]

My specific situation is this: I submitted a withdrawal form to the invesment company on 03/07/05, they lost it, I get mad and argue with everyone involved. A check is cut on 03/17/05. I ask that they process the withdrawal "as of" original date submitted and am told even if they do it as of 03/07/05, the check will still be dated after 03/15 and is therefore now a 2005 distribution. I was always under the impression that as long as the funds were out of the plan by 03/15, check date did not matter.

Don't be alarmed. They have agreed to reimburse the employer for the excise tax.

[WDIK]

I still don't see how the funds are "out of the plan" by 3/15.

[Guest k_bo]

The transaction ledgers would show it being done as of 03/07/05.

[QDROphile]

And what would corroborate?