Purplemandinga Posted July 20, 2022 Posted July 20, 2022 Would a participant who had the opportunity to make up deferrals due to military service under USERRA result in a prior year 5500 being amended to record the deferral in that plan year?
CuseFan Posted July 20, 2022 Posted July 20, 2022 I think you would account for any such contributions in the current year (year made). hr for me and Luke Bailey 2 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
Purplemandinga Posted July 20, 2022 Author Posted July 20, 2022 But what about IRC 414(u)(1)(A): (u)Special rules relating to veterans’ reemployment rights under USERRA and to differential wage payments to members on active duty (1)Treatment of certain contributions made pursuant to veterans’ reemployment rights If any contribution is made by an employer or an employee under an individual account plan with respect to an employee, or by an employee to a defined benefit plan that provides for employee contributions, and such contribution is required by reason of such employee’s rights under chapter 43 of title 38, United States Code, resulting from qualified military service, then— (A) such contribution shall not be subject to any otherwise applicable limitation contained in section 402(g), 402(h), 403(b), 404(a), 404(h), 408, 415, or 457, and shall not be taken into account in applying such limitations to other contributions or benefits under such plan or any other plan, with respect to the year in which the contribution is made, (B) such contribution shall be subject to the limitations referred to in subparagraph (A) with respect to the year to which the contribution relates (in accordance with rules prescribed by the Secretary), and (C) such plan shall not be treated as failing to meet the requirements of section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 401(m), 403(b)(12), 408(k)(3), 408(k)(6), 408(p), 410(b), or 416 by reason of the making of (or the right to make) such contribution. For purposes of the preceding sentence, any elective deferral or employee contribution made under paragraph (2) shall be treated as required by reason of the employee’s rights under such chapter 43.
Purplemandinga Posted July 20, 2022 Author Posted July 20, 2022 I suppose this is simply discussing the limits of the year for which the recovery deferrals relate and is not making other explicit statements about which year to record the contributions in? Hmm, I just don't know.
CuseFan Posted July 21, 2022 Posted July 21, 2022 That is how I read it. If I'm allowed to make up missed prior deferrals, what good does that do me if they are subject to current year limits together with my current year deferrals? But if that forces a plan sponsor to go back and amend prior returns, I think that would be very draconian/punitive and not make sense. Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
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