Joe L Posted September 9, 2020 Posted September 9, 2020 Participant X is in two 401(k) plans for 2019. He is less than 50 years old. In plan A he defers $10,000 in 2019. In plan B he defers $10,000 in 2019. In plan A, he is an HCE. The plan fails ADP testing and he is refunded $1,000. Has he violated 402(g) for 2019?
MWeddell Posted September 9, 2020 Posted September 9, 2020 Yes, the participant's elective deferrals exceeded the 2019 limit. However, if the ADP test refund occurred no later than April 15, 2020, then the excess deferrals were timely corrected.
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