ADP refunds and withholding

[BG5150]

Do you guys just submit your refunds to the carrier (with or without earnings) and just have them withhold the 10%.

Or do you get the participant elect withholding?

Or, it is a timing issue, like with RMDs?  later in the year, we just process the RMDs automatically with 10% withholding because the plan (and participant) gets in trouble if it's not done by 12/31 (in most cases).  What if you complete the ADP test on March 10?  Are you waiting on tax elections from the HCEs or are you just sending int he requests and have them w/h the 10% by default?

[Lou S.]

Timing. 10%, let them figure it out with their tax return.

[D Lewis]

We send a notice that gives them the opportunity to elect the withholding, but it tells them if we don't hear from them by X date, it will be processed with 10% W/H

I suppose if I was every up against the deadline we might just process them, but that isn't typical for us.