Late 401(k) Contributions

[PFranckowiak]

Takeover Plan

(We are getting 10/1)

Contributions for weekly payroll still being deposited Monthly - usually by the end of the next month - way late.

How far back do they need to go to file VFCP?

They were under the understanding they were doing things correctly and are going to change to weekly deposits now.

Their prior TPA didn't keep up with regulations.

Plan also was not amended for EGTRRA etc.

Trying to get this small employer out of a big mess with not a lot of expense.

Suggestions appreciated.

Pat

[12AX7]

VCP for EGTRRA non-amender is relatively painless.

How far back were late contributions made to the plan? Technically, they should all be corrected. You may also have multiple 5330 forms to complete as well. This part is not relatively painless.

The client should not be too concerned with expense if they are serious about correcting the defects. If the prior TPA (assuming if they are still in business) made an error, perhaps client can settle with them on some of these issues.