Guest grazetti Posted June 19, 2006 Posted June 19, 2006 We discovered that a plan has been incorrectly calculating the matching contributions. The matching formula is 50% up to the first 6% of compensation. The 6% of compensation was not been capped. In addition, the contributions were based on compensation over the 401(a)(17) limit. To correct the issue, we will forfeit the excess match adjusted for earnings. This has been done incorrectly for several years. How many years do we need to go back and make this correction?
Nate X Posted June 22, 2006 Posted June 22, 2006 The safest choice is to correct for all possible plan years. See EPCRS Section 6. http://www.irs.gov/pub/irs-drop/rp-06-27.pdf
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