SSRRS Posted October 18, 2018 Posted October 18, 2018 Hi, Company has DB and DC (MP) Plans. They planned on making a db and DC contribution for the year ended 12/31/17. Inadvertently they deposited the DC contribution into the DB account (db plus dc contribution all went into db account, and was below DB Max). Can this be self corrected by transfering the money into the dc account? If yes, what if the transfer is made today, October 18th, as this is after 9/15?. Thank you
C. B. Zeller Posted October 19, 2018 Posted October 19, 2018 What was reported on the Schedule SB? Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
SSRRS Posted October 19, 2018 Author Posted October 19, 2018 Thank you, the SB reported only the DB amount (ie 250,000 were the total contributions to the DB account, 225,000 was listed on the SB and the 25,000 would be reported now on the DC 5500).
C. B. Zeller Posted October 20, 2018 Posted October 20, 2018 I think you should be good in that case. The DC contribution was paid on time, i.e. segregated from the employer's general assets. It wasn't irrevocably designated as a minimum funding contribution for the DB plan (which it would have been if it had been reported on the schedule SB). So the fact that it was mistakenly deposited to the wrong investment account means you just need to move it back where it was supposed to be in the first place. Possibly adjusted for earnings. Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
SSRRS Posted October 22, 2018 Author Posted October 22, 2018 C.B. Zeller, thank you very much for your help and efficient information.
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