Guest Donell Posted May 20, 2013 Posted May 20, 2013 Is there a requirement to notify a participant of an ACP corrective distribution? This is an over-deposit of employer contributions to the participant's account.
Jim Chad Posted May 21, 2013 Posted May 21, 2013 Well, he is going to get a 1099 next January. I know of no requirement to notify him now. But I always do as a courtesy.
BG5150 Posted May 21, 2013 Posted May 21, 2013 Wait. Is it an ACP failure, or did they just put too much into someone's account? Two different corrections... QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
Guest Donell Posted May 21, 2013 Posted May 21, 2013 It's an ADP/ACP Failure. The participant will have an ADP corrective distribution and employer contribution will also need to be forfeited. We are sending a letter to the participant letting them know of the ADP corrective distribution and wanted to know if we should notify them of the employer contribution forfeiture that is related to the ADP correction.
BG5150 Posted May 21, 2013 Posted May 21, 2013 It's an ADP/ACP Failure. The participant will have an ADP corrective distribution and employer contribution will also need to be forfeited. We are sending a letter to the participant letting them know of the ADP corrective distribution and wanted to know if we should notify them of the employer contribution forfeiture that is related to the ADP correction. Sure. Why not? One or two more sentences in the letter. Maybe save some questions down the line. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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