Interest adjustment on late contribution

[Guest TortoraG]

A plan incorrectly calculated a 1997 money purchase plan contribution because it thought the plan had terminated. In fact, the plan was not terminated because 204(h) notices were never sent to employees. The plan allocated contributions only through 6/30, the supposed termination date. Now the plan is allocating contributions for the whole plan year. But since the contribution is late, what is the interest rate on the late contribution that must be credited to employees? The plan earned over 30% for 1998. Must we use that rate or is there some other nominal rate?

[Guest RARogers]

I think there is direction on earnings rates for corrections in the Rev. Procedure on the voluntary correction programs (VCR, Walk-in Cap, etc)