Will J Posted October 31, 2022 Posted October 31, 2022 Employer received a participant request to increase 401k deferrals from 3% to 5% in 2020. The request was received but never implemented, but the participant just noticed that the change never occurred. Is the participant entitled to any corrective contributions/earnings on the missed deferrals and safe harbor matching contributions? Thank you.
justanotheradmin Posted October 31, 2022 Posted October 31, 2022 Generally yes, lost earnings on any corrective amount is required. See Revenue Procedure 2021-30. More information is needed if you have questions about calculating the QNEC for the missed deferrals and the missed safe harbor match amount. Revenue Procedure 2021-30 https://www.irs.gov/pub/irs-drop/rp-21-30.pdf Additional information can be found here: https://www.irs.gov/retirement-plans/401k-plan-fix-it-guide Luke Bailey 1 I'm a stranger on the internet. Nothing I write is tax or legal advice. I'd like a witty saying here, but I don't have any. When in doubt, what does the plan document say?
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