Guest Enda80 Posted February 4, 2009 Posted February 4, 2009 Hypothetical situation; say a taxpayer inputs the wrong plan compensation figure for an employee. The employee's allocation gets made (and, to make things easier, in this hypothetical situation, a money purchase plan figures in, with employees receiving a straight 5% of their compensation, therefore the allocation of the other employees would have stayed the same had the proper compensation figure got used), but since the allocation reflected incorrect information, the employees had a lower allocation than he or she would have gotten. Therefore, the difference between the allocation actually made and the allocation that did get made awaits funding, and the interest or gains that would have come due to this employee must also get restored. My question; would this fall under the self-correction program? If so, can anyone give me a citation? Let us say that a coding error happened, that all other employees had their compensation correctly computed as including all of the compensation figures that the plan documents says must constitute compensation for plan purposes.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now