Guest Philip2 Posted November 3, 2009 Posted November 3, 2009 Plan provides that if you fail ADP, elective deferrals are returned and the related match is forfeited. Under PPA, we eliminate gap period income on the excess elective deferrals; how do we measure income on the forfeited match? Do we eliminate gap period income on the match as well? These are not matching contributions that fail ACP; this is the match on amounts that fail ADP.
Below Ground Posted November 4, 2009 Posted November 4, 2009 I suggest that since the match I think you are discussing is a match that can't be allocated, allocation of earnings is not applicable. This is analogous to a match that would cause IRC 415 to be violated. Application of an earnings adjustment is not applicable, as I understand. This is becuase the match allocation should simply not be made. Is your question related to monies that were deposited and need to be remove from an individual's account? Having braved the blizzard, I take a moment to contemplate the meaning of life. Should I really be riding in such cold? Why are my goggles covered with a thin layer of ice? Will this effect coverage testing? QPA, QKA
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