"mistaken contribution" (sort of"

[benpat3]

What if you have members from one union (say "A") working for an employer and the employer makes contributions to the 401k plan but made them to the wrong union plan (say "B"). There is no reciprocity agreement between the two unions A and B. It has been caught within the 6 months to return mistaken contributions to the employer but there have been gains on the contributions. How do we get contributions and the gains to the correct plan for the participants? Of can we?

[masteff]

You might double check w/ your ERISA counsel, but proably can simply return the monies to the sponsor and then put into the correct plan. (Actually, I'd do both as close to same day as possible, so you don't have to mess w/ interim earnings.) If you have the same recordkeeper on both, you might be able to just do a plan to plan movement.