John A Posted December 3, 1999 Posted December 3, 1999 If a participant exceeded the $10,000 402(g) limit for 1998 and the excess was not returned by April 15, is there another deadline for returning the excess or can the excess remain in the plan? (I realize double taxation will apply, the excess will be taxed in the year of deferral and in the year of distribution.)
davef Posted December 4, 1999 Posted December 4, 1999 April 15 is the deadline for returning excess deferrals under 402(g). If they are not returned by that date, you've got a qualification problem (plus the double taxation issue you mentioned). It can be corrected through APRSC or VCR/SVP (see Rev. Proc. 98-22)
david rigby Posted December 4, 1999 Posted December 4, 1999 On this website: http://www.benefitslink.com/IRS/revproc98-22.shtml I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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