Pammie57 Posted July 26, 2017 Posted July 26, 2017 An employer under calculated and under deposited two participants' deferrals for the entirety of the plan year. When discovered at year end, they put in 25% of the missed (under deposited) deferrals. Do they prepare a 5330? - and do they calculate earnings/amount involved based on the 100% that should have gone in or the 25% that got put in. The employee did not make up any deferrals - just the employer.
Belgarath Posted July 26, 2017 Posted July 26, 2017 25% is correct. No 5330. Earnings must be included. And IF there is any match that was missed due to the error, the additional match, plus earnings, must be contributed. Plus proper notice, etc. - see RP 2016-51, Appendix A, .05 (9).
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