Guest Kansas Posted January 25, 2010 Posted January 25, 2010 Several employees of a 401(k) plan are over the 415 limit. Do I need to go through the EPCRS for correction, or what are my options?
BG5150 Posted January 25, 2010 Posted January 25, 2010 I would think your plan document would have the remedy. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
QDROphile Posted January 25, 2010 Posted January 25, 2010 But refund is not a remedy that can be provided by a plan document.
Lou S. Posted January 25, 2010 Posted January 25, 2010 Several employees of a 401(k) plan are over the 415 limit. Do I need to go through the EPCRS for correction, or what are my options? Yes. The correction is outlined in EPCRS under the final 415 regs. For some reason the IRS eliminated the ability to automatically correct the 415 excess by refunding employee deferrals, although the method for correcting under EPCRS is identical to pre-415 regs as far as I can tell.
fiona1 Posted January 26, 2010 Posted January 26, 2010 I believe you need to use the EPCRS. The Final 415 regulations removed correction options and the preamble directs the plan sponsor to use the EPCRS. The EPCRS (Rev Proc 2008-50) was updated to include 415 correction options. Even if the plan had a specific correction method, I think it would be trumped by the EPCRS.
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