Jump to content

Forfeiture of Related Matching Contribution for NHCE??


rocknrolls2

Recommended Posts

Posted

Participant in a 401(k) Plan is non highly-compensated and makes 401(k) Contributions in excess of the 402(g) limit. These excess deferrals were matched. Section 411(a)(3)(G)provides that matching contributions related to excess deferrals are to be forfeited. Since the purpose of forfeiting such matching contributions is to avoid a discriminatory rate of match, would such forfeiture be required in the case of a non highly-compensated employee?

Posted

are terms of document being followed?

1. ee is not allowed to defer over 10,000

so that money is returned.

2. suppose match is 100% of deferral.

ee is not entitled to the excess match. you haven't followed terms of the document if you leave it with him. Its based on a deferral he was never entitled to.

at least that sounds like what you are saying is taking place.

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...

Important Information

Terms of Use