Negative Contributions

[Safeharbor29]

If an employer submits a negative contribution in 2014, can they resubmit 2014 deferrals to be reapplied back into the participant's account? can you do this as a QNEC?

[QDROphile]

Only if the negative contribution is a negative square root. What is a negative contribution? I have experienced a negative Christmas bonus, but until then I would not have thought it was possible..

[hr for me]

Why did they have a "negative contribution"? Were there "negative wages"? And if so, what 2014 deferrals would they resubmit? I think we need more details on what actually happened.

[My 2 cents]

Only if the negative contribution is a negative square root. What is a negative contribution? I have experienced a negative Christmas bonus, but until then I would not have thought it was possible..

So, Mr. Cratchit, what is a negative Christmas bonus?

Do I really want a better understanding concerning negative bonuses and negative 401(k) deferrals?

[QDROphile]

Employer covered the cost of something for all employees as an employer expense mid-year. Employer decided late in the year not to take responsibility for determining that the expense was not taxable compensation and added the value (but no additionall actual dollars) to paychecks in the Christmas pay period. Withholding was based on the larger number (regular pay plus the imputed compensation), so the paycheck around Christmas time was lower than usual because of the greater withholding.

I know you can say that there was no negaitve (assuming that the goody was taxable compensation) and it was only a matter of timing and apearance, but "negative Christmas bonus" is a much more provocative description.

So do we have an equally inadequate explanation of a negative contribution?