Form 5500-SF Line 8e

[steve45]

Hope everybody is doing well.

 

Currently, I'm working on a plan and the facing the following issue- 

' an employee made overfunded contribution in Deferral $1,500 & Safe Harbor Match $450 source in 2020 plan year and then it got corrected in 2021 plan year''

Now, do  I need to report these amount under 8D or 8E in 2021's Form 5500-SF?

8 D - Benefits paid

8 E - Certain deemed and/or corrective distributions

Please note, John Hancock report stated these amount as In Service distribution.

Thanks for your insights.

[RatherBeGolfing]

Corrective distributions - 8E

[steve45]

thanks a lot.

[BG5150]

Wait.  How was the correction done?

What is an 'overfunded' deferral?  Over 402(g)?  Or did the employer double up the deposit or something?

[steve45]

On 1/24/2022 at 7:49 PM, BG5150 said:

Wait.  How was the correction done?

What is an 'overfunded' deferral?  Over 402(g)?  Or did the employer double up the deposit or something?

in my case  it's overfunded deferral.
Sorry for late response.

[BG5150]

I'm still not sure what that means.  Did extra money come out of his paycheck?  Or did the employer just send too much?  For example, deferral was $1500, but the deposit was $3000.