2024 Non Elective Safe Harbor not deposited

[D Lewis]

We have a pooled plan that we just found out the sponsor did not deposit the 2024 safe harbor contribution.

I believe we have until 12/31/2026 to correct this error, but the sponsor must put in in lost earnings from 12/31/2025.

I've calculated the year to date earnings on the trust to be 0.88% which is lower than the DOL VFCP calculator.

Can I use the actual rate or do we have to use the higher of the actual or the DOL calculator?

[FORMER ESQ.]

If you take a look at Section 3 of Appendix B in the EPCRS, it notes that the earnings rate to be used is generally the "investment results that would have applied had the failure not occured." I read that to mean the actual overall earnings rate for the plan. I think it is a reasonable position to use the .88%.

[BG5150]

Don't forget, the deposit will be considered 415 contribution for 2026 for the participants.

IMHO the DOL calculator should on be used for VFCP filings.

[D Lewis]

Thank you both

[EBP]

Maybe I'm missing something, but if the contribution is not late, why do you have to calculate earnings?

[BG5150]

If Remember correctly, the SH must be deposited no later than 12 months after the plan year.  So if the PY is 2024, then 12/31/25 was the deadline.

[EBP]

BG5150 - you're right. I was reading the dates incorrectly and thinking they were making the contribution by the end of the next plan year. Thanks for pointing that out.

 

[BG5150]

On 5/15/2026 at 4:41 PM, BG5150 said:

If Remember correctly, the SH must be deposited no later than 12 months after the plan year.  So if the PY is 2024, then 12/31/25 was the deadline.

Actually, I believe the deposit date for a 2024 415 contribution was 10/15/25.  Anything after than is considered 415 in the year of deposit.

usually not a big deal.  Unless there are HCEs maxing PS.