Employer switched payroll companies mid-year 2018. Due to some type of error participant defers $20,000 during 2018, but the relevant parties (participant, employer, payroll company) think that only $18,500 has been deferred. The participant is catch-up eligible. The issue is that W-2 was prepared and taxes filed assuming a contribution of $18,500. Is there any way to get around this, other than by amending the W-2 and tax return? Employer prefers that it be distributed to the participant similar to an excess deferral. Participant is okay with that, but I'm not aware of anything that allows that.

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Sponsor of SIMPLE IRA has employee who did not elect to defer until mid-year. Then she deferred 7% until the end of the year. Employer pays match up to 3% each pay period. At end of year, the employee had averaged, say, 3.5%, and should receive 3% match on full year compensation. Employer says he doesn't want to pay true-up, that he put it in each pay period and because she chose not to start making deferrals until mid-year, he should not have to pay the additional match. Is that an option in a SIMPLE IRA? What are the risks of not making the additional match contribution? The employee is unaware that she may be entitled to additional ER match.

A participant's loan was deemed distributed in 2014. He received a 2014 1099-R for the balance. However, a loan payment was applied to the loan balance in 2015 and the loan was deemed distributed again later that year. He received a 2015 1099-R for the balance. Should one of the 1099-Rs be reversed? The participant is an active employee.

I am working on a plan that is Top Heavy and is only allocating a 3% nonelective Safe Harbor for the Plan Year. No other employer contributions or forfeitures. The plan excludes compensation while not a participant, so I have allocated a Safe Harbor contribution to a participant based on her partial year compensation. I did so because I thought that Top Heavy minimums were waived if the only contribution was the Safe Harbor. I am being questioned on why I did not allocate Safe Harbor based on the participant's full year compensation. Could anyone point me in the direction of a regulation that says a plan is exempt from the TH minimums because it is not considered TH in a year when the only contribution is a SH? And if this is correct, do you agree that the SH can be allocated on partial year compensation?

HCE defers $6,000 for 2018. He's over 50. Employer makes a $55,000 profit sharing contribution for him. Total Annual Additions are $61,000. $6,000 is catch-up. What do I put in the ADP test? $6,000 or $0?