Max deferral

[alexa]

We have an employee who transferred from one of our other companies in our controlled group

The company has a different EIN from ours

The other company has their own 401k plan and is a QSLOB arrangement.

Are we required to do a 401k refund?

thanks

[Bill Presson]

We have an employee who transferred from one of our other companies in our controlled group

The company has a different EIN from ours

The other company has their own 401k plan and is a QSLOB arrangement.

Are we required to do a 401k refund?

thanks

Refund what?

[alexa]

We have an employee who transferred from one of our other companies in our controlled group

The company has a different EIN from ours

The other company has their own 401k plan and is a QSLOB arrangement.

Are we required to do a 401k refund?

thanks

Refund what?

Refund the amount over 15500 for 2008

[mphs77]

The $15,500 is the 402(g) amount which is based on the calendar year for an individual. An individual may only deduct up to $15,500 from compensation earned from any and all employers in the calendar year.

Thus, it looks like you have a problem that will need a refund as a 402(g) violation.

[alexa]

The $15,500 is the 402(g) amount which is based on the calendar year for an individual. An individual may only deduct up to $15,500 from compensation earned from any and all employers in the calendar year.

Thus, it looks like you have a problem that will need a refund as a 402(g) violation.

If we distribute the excess 402g deferral before 12/31/2008 will there be a 2008 1099R issued?

If distribute after 12/31/2008 I know a 2009 Form 1099 R issued showing taxable for 2008 but wasn't sure if we refund during the year

Does anyone have a sample 402g excess letter explaining this to a participant?

I also have an excess match situation I am refunding prior to year end- 1 is for 2007 excess, the other is for this year 2008

Do you have a sanple letter to a participant explaining this forfeiture

Thanks

Lexy