Correcting Excess Deferrals

[steve45]

I've a confusion regarding 402g excess deferral. If there are any excess deferral contribution amount then excess contributions must be refunded within April 15 (no tax required).

Do I need  forfeit any match contribution related to this excess deferral contribution?

I've attached an ASC generated report where it shows $14 attributable match need to be forfeited. Please share your thoughts.

 

 

 

Thanks for any insight.

[Mr Bagwell]

2019?

What is match formula?

What is compensation?

[steve45]

On 12/31/2021 at 10:59 PM, Mr Bagwell said:

2019?

What is match formula?

What is compensation?

Traditional Employer Match 50% upto 4%  & compensation $137,500.

What could be the  consequence if the match was Safe Harbor?

[Mr Bagwell]

Still very little to go on here....

But... I think I'm safe to say there is no related match as 2019 max compensation divided by max deferral (19,000 / 280,000) is 6.79%.  So as compensation gets lower percentage goes up.  So this 200 in the scenario has not been matched.

Safe Harbor?  What match formula you want to scenario?  Basic Match.  Probably no attributable match.  Enhanced match, need to know formula, as there could be attributable match.

[steve45]

8 hours ago, Mr Bagwell said:

Still very little to go on here....

But... I think I'm safe to say there is no related match as 2019 max compensation divided by max deferral (19,000 / 280,000) is 6.79%.  So as compensation gets lower percentage goes up.  So this 200 in the scenario has not been matched.

Safe Harbor?  What match formula you want to scenario?  Basic Match.  Probably no attributable match.  Enhanced match, need to know formula, as there could be attributable match.

How do I calculate attributable match for excess deferral?

[BG5150]

On 12/31/2021 at 9:39 PM, steve45 said:

How do I calculate attributable match for excess deferral?

How much much would be due on a $19,000 deferral

How much match would be due on a $19,200 deferral

What is the difference between the two.

I agree with Mr. B., though.

Comp of $137,500 and a deferral of $19,200 leads to a 13.93% deferral rate.  Well above the threshold for the maximum match.

I doubt this would make a difference, but is the match calculated on a payroll or annual basis?

My last suggestion is to check with ASC and ask them to give you the reason the system is calculating the $14 excess match. 

(Whenever my r/k system spits out an answer I am not expecting, it bugs the heck out of me, and I spent probably way too much time trying to figure it out.  I have zero compunction in dialing up the help desk and have them explain it to me.  More often than not it's my fault.  Something isn't selected properly in the specs, or I have some data int he wrong place...)

[chc93]

7 hours ago, BG5150 said:

. . .

My last suggestion is to check with ASC and ask them to give you the reason the system is calculating the $14 excess match. 

(Whenever my r/k system spits out an answer I am not expecting, it bugs the heck out of me, and I spent probably way too much time trying to figure it out.  I have zero compunction in dialing up the help desk and have them explain it to me.  More often than not it's my fault.  Something isn't selected properly in the specs, or I have some data int he wrong place...)

[bolded]. The few times that we got numbers from the ASC valuation system that we couldn’t duplicate and/or didn’t understand, we emailed ASC support and usually got immediate responses… sometimes within hours.