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Posted

This is actually a follow up question to my last post but I thought it would be easier to start a new topic

The background is that the employer failed to withhold on Group Term Life Insurance Premiums which is on the participants W-2. The plan is an enhanced safe harbor match 100% up to 5%. The real problem is that this has been going on for 7 years.

We have calculated the correction based on EPCRS, which is the 50% of the missed deferral opp and the full sh match.

The issue we have now is how to calculate the interest. We have read that using the DOL Calculator is acceptable however the client is unwilling to go back to their payroll records for the past 7 years to let us know every payroll the GTL was attributable to - in order for us to us the DOL calculator.

Is there another "easy" :) way of calculating interest on missed deferral opportunity?

Posted

If I recall correctly, there are several options beginning on page 117 of Rev. Proc. 2013-12

Great thank you - this is exactly what I was looking for.

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