Guest lindamichals Posted February 14, 2006 Posted February 14, 2006 What do I tell my client who did deduct 401k deferrals from a terminated employee's severance pay? What is the correction method when this occurs? I'm sure it happens all the time. Thanks. Linda Michals
Beltane Posted February 14, 2006 Posted February 14, 2006 What do I tell my client who did deduct 401k deferrals from a terminated employee's severance pay? What is the correction method when this occurs? I'm sure it happens all the time. Thanks.Linda Michals I believe you can self correct this under EPCRS by correcting the erroneous deferrals plus earnings, and distributing them as normal income, and amend the W-2 accordingly.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now