Correction for untimely Contributions

[Guest Kathleen]

Has anyone had experience correcting a untimely contribution at the plan level? For example, the contribution was credited in August rather than February.

I am looking for a streamline approach to correcting this. Such as crediting the depost currently and providing participants the highest rate of return earned by investments options for that period or a weighted return based on plan asset allocation? Any ideas?

[david shipp]

Assuming the contributions were salary deferrals, would this also be a prohibited transaction? Since the DOL payback program is long over, how does one handle it?

[QDROphile]

See section 6 of Rev Proc 98-22, but I don't think this is the only acceptable way to impute earnings on late allocations; it is the most generous. No comment on prohibited transaction question.