Incorrect SH match paid in terminating plan

[Cynchbeast]

We have a client who sold his business in October last year (asset sale).  The sponsor had paid ongoing SH match, and when we look at the data from 2019, we found 1 person was overpaid $24 and 4 of the 5 who deferred were underpaid, ranging from $32 to $244.  $ is in John Hancock, and all but 2 have already been paid out.  We figure he can forget ever getting the overpayment back.

Plan is currently SH with all NHCEs in one group.  Only HCEs were owner and son, and neither deferred.

Were this a New Comp with one class per participant and no SH, and we were to count the SH paid as Profit Sharing, this plan would pass ADP and 401(a)(4) testing since Owners/HCEs got nothing.

Is there any way to justify a retroactive amendment to 01/01/19?  Any ideas?

[Cynchbeast]

We have a client who sold his business in October last year (asset sale).  The sponsor had paid ongoing SH match, and when we look at the data from 2019, we found 1 person was overpaid $24 and 4 of the 5 who deferred were underpaid, ranging from $32 to $244.  $ is in John Hancock, and all but 2 have already been paid out.  We figure he can forget ever getting the overpayment back.

Plan is currently SH with all NHCEs in one group.  Only HCEs were owner and son, and neither deferred.

Were this a New Comp with one class per participant and no SH, and we were to count the SH paid as Profit Sharing, this plan would pass ADP and 401(a)(4) testing since Owners/HCEs got nothing.

Is there any way to justify a retroactive amendment to 01/01/19?  Any ideas?

[Mr Bagwell]

I would think the underpaid would need to be fixed. 

If my memory serves me right, the overpayment per EPCRS is gone and forgot about.  $24 is less than the allowable overpayment.

Not sure why you went to the Cross tested plan argument, when it doesn't apply.  The plan was sh match for 2019.  Can't un ring that bell.

Push to get the safe harbor match difference paid and be done. 

[Larry Starr]

2 hours ago, Cynchbeast said:

We have a client who sold his business in October last year (asset sale).  The sponsor had paid ongoing SH match, and when we look at the data from 2019, we found 1 person was overpaid $24 and 4 of the 5 who deferred were underpaid, ranging from $32 to $244.  $ is in John Hancock, and all but 2 have already been paid out.  We figure he can forget ever getting the overpayment back.

Plan is currently SH with all NHCEs in one group.  Only HCEs were owner and son, and neither deferred.

Were this a New Comp with one class per participant and no SH, and we were to count the SH paid as Profit Sharing, this plan would pass ADP and 401(a)(4) testing since Owners/HCEs got nothing.

Is there any way to justify a retroactive amendment to 01/01/19?  Any ideas?

What do you want the amendment to do? I think that matters a whole lot.