Purplemandinga Posted March 22, 2019 Posted March 22, 2019 I'm not seeing an EPCRS solution to a situation where a participant had a 12% deferral rate, subsequently lowered it to 1% but the employer continued to defer 12% from the participants paycheck. Is this a situation where the excess over what was desired to be deferred can be returned to the participant or is the excess deferral over and above 1% stuck in trust?
Luke Bailey Posted March 22, 2019 Posted March 22, 2019 Operational qualification failure of not following plan document. The correction is to return the excess amount. There are details regarding timing (e.g., EPCRS vs. VCP) and also reporting. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034
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