Increased Tax Liability for Corrective Payments

[Young Curmudgeon]

If a corrective lump sum payment for missed installments throws a participant into a much higher tax bracket, would the concept of making the participant whole require the employer to provide additional remediation for the added tax burden?

[J Simmons]

I don't recall EPCRS 'make whole' requiring any consideration of the marginal tax rate or that you need to add in a factor for the 'added tax burden' to make the employee whole as part of the remedy. Because the mistake/remedy did cause the added tax burden, the employer might want to make a payment for the 'added tax burden' factor to the employee.