Jump to content

Employee incorrectly classified as HCE


Guest Rick Butler

Recommended Posts

Guest Rick Butler
Posted

If an ADP test fails due to an employee being incorrectly classified as an HCE, can any corrective measures be taken to restore distributions already made to HCE's?

Posted

There's nothing in the regulations allowing you to reverse the corrective distributions. However, I think you'll have to correct the distributions using the EPCRS because now that the ADP test is run correctly with the correct HCE determinations, there is no distributable event allowing for the distributions to HCEs.

Archived

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

×
×
  • Create New...

Important Information

Terms of Use