Lou81 Posted July 6 Posted July 6 I am wondering how to handle this situation. HCE retires and is requesting a rollover of 100% of his account balance. The document states that distributions are paid out: immediately The plan fails the ADP test every year and he is due a refund. Should the plan pay out all of his account, except for current year contributions? or do we hold until after the APD test is completed next year? Thank you!
BG5150 Posted July 6 Posted July 6 Is he planning on rolling over the funds? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
Bri Posted July 6 Posted July 6 I think you let him take the whole thing to his rollover, but warn him up front that some of that amount is going to be deemed an ineligible rollover contribution and will be reflected as such on the separate 1099-Rs. If he wants to avoid the hassle he can wait, but it's his call. Gilmore, CuseFan and HRagain 3
BG5150 Posted July 6 Posted July 6 (And the fact he will have to withdraw full the corresponding amount of funds (plus earnings) from his IRA account and an ineligible contribution. Gilmore 1 QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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