metsfan026 Posted September 23 Share Posted September 23 I know if someone is funding the Safe Harbor Match on a payroll-by-payroll basis, a true-up is not required. However, what happens if someone is inadvertently overfunded? Does that money need to be pulled from the account or since it's on a payroll-by-payroll basis no adjustments are needed? Thanks in advance! Link to comment Share on other sites More sharing options...
401king Posted September 23 Share Posted September 23 An overfunding should be treated as a Correction, rather than a True-Up. Gina Alsdorf 1 R. Alexander Link to comment Share on other sites More sharing options...
metsfan026 Posted September 23 Author Share Posted September 23 OK, so pull out the overages and move them to the Forfeiture. Thanks! Link to comment Share on other sites More sharing options...
Mr Bagwell Posted September 23 Share Posted September 23 I would suggest this is not a forfeiture, but rather something that should probably go to an unallocated account and used up as soon as possible. Link to comment Share on other sites More sharing options...
austin3515 Posted September 24 Share Posted September 24 You could consider it profit sharing if there was an objective of not taking money away from someone. Subject of course to any allocation conditions and nondiscrimination. Obviously if there is a vesting schedule on profit sharing etc. you'll want to move the money to their profit sharing money type. We've been pretty accomodating to clients who do not want to take amounts (especially small amounts) away from NHCE's. I know if we had overfunded someone's account by $100 I would not want to go to that person tell them I screwed and take $100 from them. Most (but not all) of my clients have shared that sentiment... Austin Powers, CPA, QPA, ERPA Link to comment Share on other sites More sharing options...
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