Earnings on a Corrected Profit Sharing Contribution

The wrong compensation was used in the allocation of the 2020 profit sharing allocation.  The Plan Sponsor left off a bonus for 3 employees when they reported the compensation to the TPA.  We have determined an additional $5,000 + investment earnings must be deposited to the Plan.  For 2021, the earnings percentage was 11%.  For 2022, the earnings percentage was -18%.  

Do you use the negative earnings for 2022?

"However, a corrective allocation is not required to be adjusted for losses.  Accordingly, corrective allocations must include gains and may be adjusted for losses."

So someone has to make a decision on what to do.  

i would document my findings and process with no adjustment.  Or I would use the VFCP calculator for earnings and be done.

Chances are someone has another opinion

Quick and easy VFCP Calculator https://www.askebsa.dol.gov/vfcpcalculator/webcalculator.aspx