Gadgetfreak Posted January 10, 2024 Posted January 10, 2024 An employer accidentally sent too much money to the 401k custodian. They have not yet claimed it as a deduction for their company return. I know the concept of "once it becomes a plan assets, it needs to stay" but does that really apply to a clerical error? Can the money be sent back to the employer? ERPA, QPA, QKA
david rigby Posted January 10, 2024 Posted January 10, 2024 You might get some help by using the Search feature above, with the search phrase "mistake of fact". Luke Bailey, acm_acm and LauraH 3 I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Popular Post Peter Gulia Posted January 10, 2024 Popular Post Posted January 10, 2024 Although ERISA § 403(c)(1) commands that a plan’s assets must never inure to the benefit of any employer, § 403(c)(2)(A)(1) excepts a return, “within one year after the payment of the contribution”, of a contribution an employer made “by a mistake of fact[.]” ERISA § 403, unofficially compiled as 29 U.S.C. § 1103 http://uscode.house.gov/view.xhtml?req=(title:29%20section:1103%20edition:prelim)%20OR%20(granuleid:USC-prelim-title29-section1103)&f=treesort&edition=prelim&num=0&jumpTo=true. Interpretations about what is or isn’t a mistake of fact vary widely. LauraH, Gadgetfreak, Luke Bailey and 2 others 4 1 Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now