Earnings on Late Employer Contribution

[PensionPro]

Plan doc provides nonelective contribution by payroll. Employer makes miscalculation and does not withhold 401(k) deferrals or make nonelective contribution for a couple of employees. Error is discovered 3 months later.

Employer is restoring lost earnings on the 401(k) deferrals. Do they need to restore lost earnings on the nonelective contribution? Thanks for your replies!

[ETA Consulting LLC]

Do they need to restore lost earnings on the nonelective contribution? Thanks for your replies!

I don't think so. Technically, it's not an error; this should be verified against document terms regard to contribution timing for 'employer contributions'. Even the deferrals may be corrected by allowing those missed employees an opportunity to make extra deferrals (provided there is enough time remaining in the year).

Good Luck!