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Does an employer have to double up on deferrals if the payroll departm


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Guest Tara Curran
Posted

Is an employer legally required to withhold 401(k) deferrals from an employee if the payroll department forgot to withhold from 2 checks. The employee does not want the employer to double up on the withholding from the next paycheck. Does the employer have to withhold this money or can they ignore the first two deferrals that were not made?

Posted

check out Q & A #118 (I think thats the one) under correction of plan defects. Maybe #117 as well.

while not exactly addressing your situation it may cover what you need.

the problem is worse if there is a match in the plan.

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