Match contribution not capped at Annual Contribution Limit

[Guest Powers]

We have a takeover plan whose non-discrim testing over the past 10 years appears to be suspect. In looking at a few years, I have several HCE's whose allocated match (formula is 100% of deferrals up to 3% of eligible compensation) was not capped at the Annual Compensation Limit. This has been the case for the three years I have been reviewing. I am going to assume that it goes back to the 90's. What is the best way to correct? Any suggestions?

[ETA Consulting LLC]

I am going to assume that it goes back to the 90's. What is the best way to correct? Any suggestions?

Don't assume anything, but you're right to expect there 'may' be issues in other years. Affirm what you can based 'solely' on all information you can obtain from the client. After ascertaining those specific years the errors have occured, you correct through a VCP filing (where you specifically identify the problems, recommended solutions, and explain the changes the client is making to ensure those issues do not recur.

Good Luck!