MjInvestments Posted December 11, 2017 Share Posted December 11, 2017 Employer was not updating participants deferral changes they made on the Recordkeeper website. The plan is 3% Safe harbor, so no matching to worry about. So if a plan missed updating a deferral for all of 2016 and 2017, do they to do any corrective remedies? Participant believed they were deferring 8% Roth, but the payroll was only deferring 7%. Basically $15 per pay period difference. Is the link below relevant, or does it not apply because these are Roth contributions? https://www.irs.gov/retirement-plans/fixing-common-plan-mistakes-correcting-a-failure-to-effect-employee-deferral-elections Link to comment Share on other sites More sharing options...
401king Posted December 11, 2017 Share Posted December 11, 2017 Why would Roth contributions have an exception to a failure to implement deferrals? RatherBeGolfing 1 R. Alexander Link to comment Share on other sites More sharing options...
Kevin C Posted December 12, 2017 Share Posted December 12, 2017 Missed Roth deferrals are treated the same as missed pre-tax deferrals. See Rev. Proc. 2016-51, Appendix B, 1.03 for your situation and Appendix A .05(3) for an improper exclusion. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now