Ineligible Ee

[stevena]

I have a plan where an ineligible employee contributed ee deferrals. We are forfeiting the account balance, and the employer is repaying the salary deferrals to the employee through payroll with corporate funds.

My question is, do I still include the 2004 deferral amount in my ADP test? I am thinking yes, but I dont know why I am thinking that. I did a search but everything I found dealt with how to return the deferrals, I cant find any discussion about the testing.

Thanks

[Guest TGeer]

No, they don't count. I would back that up with a plan administrator's determination to correct elgibility issues before ADP/ACP issues.

[Jim Chad]

Has this correction been changed by Rev 2013-12?