"I have a plan that is asking if they can not to a Safe Harbor (3% NE) contribution for 2022. Their document states that there will be a SH contribution But only if the plan sponsor provides a follow-up notice. I have not seen that language before on an adoption agreement. I'm not sure if that qualifier gets them out of having to make one,Edited: they did not distribute the notice last year Also, if they are supposed to make the contribution and do not, The plan is out of compliance, but I'm not sure what would happen after that."

[Sponsored]

Help the Enterprise Iron team understand how recent legislative changes surrounding Plan Documents have impacted our industry. The data will be used during our upcoming session at The SPARK Forum on November 7th. Take the survey now. Thank you!

"Client, through payroll error contributed more than $26,000 for 2021; but took the deduction for only $26,000 and that is what the W-2 shows. Error most probably made with the last payroll in December, but all deposits for 2021 were made in 2021. Just because it does not make sense to take the excess out of the plan then put it back in one week later I don't think negates the fact that there was an excess, but it was cured in less than a week. Still need a 5330 and payment of the excise tax? Of course the accountant told the client not to worry about it, leave it alone because it was not an over-deduction, count the contribution for 2022, and hope they don't get audited."