cpc0506 Posted February 16, 2015 Posted February 16, 2015 Client's 401(k) Plan limits the deferral limit of HCEs to the amount which equals current 402g deferral limit divided by current compensation limit. That number for 2014 would be 6.73% (17,500/260,000). HCE contributes 10.6%. Plan does not fail the ADP Test but HCE exceeded the plan imposed limit. What is the deadline for the return of excess? March 15th or April 15th?
QDROphile Posted February 17, 2015 Posted February 17, 2015 Sounds like you are under EPCRS without a specific Code correction. The failure is a failure to follow plan terms.
Tom Poje Posted February 17, 2015 Posted February 17, 2015 March 15 is the deadline for a failed ADP test for a calendar year plan. you do not have that April 15 is the deadline for return of excess deferrals. you do not have that either but as indicated above you simply correct under EPCRS. If the person is age 50 or older, then you do have a catch up contribution.
cpc0506 Posted February 17, 2015 Author Posted February 17, 2015 Is this eligible for self correction? And are taxes expected to be withheld? How do you report on the 1099-R?
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