Retirement Plan Consultants
Hochheiser Deutsch & Co, Inc.
Pension Rights Center
Kentucky Trust Company
Loren D. Stark Company
Nicholas Pension Consultants
Farmer & Betts, Inc.
Plumbers Local Union No. 1 Benefit Funds
EPIC Retirement Plan Services
Retirement Industry Trust Association (RITA)
RTD Financial Advisors
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
|What If the Participant Already Spent an Overpayment from the Plan?|
Belfint Lyons Shuman
Jan. 19, 2021
"Employers who issue overpayments greater than $100 should ask the participants to 'Give It Back!' and if/when they say they already spent the money, after responding 'Ok, Keep It!' employers must reiterate that the amount representing the overpayment can not benefit from favorable tax treatment and must be removed from any tax deferred accounts that accepted a rollover, if applicable. When appropriate, the employer or another party can put the amount of the overpayment in an unallocated amount to be offset against future employer contributions, or they can reimburse defined benefit or balance-forward plans to make them whole."
|Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above).|
|An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified).|