justatester Posted June 15, 2020 Posted June 15, 2020 Can the plan sponsor use the proceeds from the forfeiture account to pay the excise tax due on late ADP corrections? I understand they will need to pay it directly and the potential get reimbursed from plan.
BG5150 Posted June 15, 2020 Posted June 15, 2020 No. Luke Bailey 1 QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
justatester Posted June 15, 2020 Author Posted June 15, 2020 Is there a reason why? THey can pay other "bills" with the forfeiture money.
Lou S. Posted June 15, 2020 Posted June 15, 2020 Because it's an excise tax on the PLAN SPONSOR and not considered a reasonable expense of the PLAN. Luke Bailey 1
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