Correction Methods. (a) VCS Correction Method. Appendix A, section .03 sets forth the VCS correction method for a failure to satisfy the actual deferral percentage ("ADP"), actual contribution percentage ("ACP"), or multiple use test set forth in □□ 401(k)(3), 401(m)(2), and 401(m)(9), respectively.
Correction Methods. (i) VCS Correction Method. Appendix A, section .08 sets forth the VCS correction method for correcting the failure to satisfy the § 415(c) limits on annual additions.
Correction Methods. (i) Appendix A Correction Method. Appendix A, section .08 sets forth the correction method for correcting the failure to satisfy the § 415(c) limits on annual additions.
Correction Methods. (a) Appendix A Correction Method. Appendix A, section .03 sets forth a correction method for a failure to satisfy the actual deferral percentage ("ADP"), actual contribution percentage ("ACP"), or, for plan years beginning on or before December 31, 2001, multiple use test set forth in §§ 401(k)(3), 401(m)(2), and 401(m)(9), respectively.
Correction Methods. (a) SVP Correction Method. Appendix A, section .03 sets forth the SVP correction method for a failure to satisfy the actual deferral percentage ("ADP"), actual contribution percentage ("ACP"), or multiple use test set forth in §§ 401(k)(3), 401(m)(2), and 401(m)(9), respectively.
Correction Methods. (i) SVP Correction Method. Appendix A, section .05 sets forth the SVP correction method for correcting the exclusion of an eligible employee. In the case of a defined contribution plan, the SVP correction method is to make a contribution on behalf of the excluded employee. Section 2.02(2)(a)(ii) below clarifies the SVP correction method in the case of a profit-sharing or stock bonus plan that provides for nonelective contributions (within the meaning of § 1.401(k)-1(g)(10)).
Correction Methods. (a) Contri- bution Correction Method. A failure in a defined contribution plan to apply the proper vesting percentage to an employ- ee’s account balance that results in forfei- ture of too large a portion of the employ- ee’s account balance may be corrected using the contribution correction method set forth in this paragraph. The employer makes a corrective contribution on behalf of the employee whose account balance was improperly forfeited in an amount equal to the improper forfeiture. The cor- rective contribution is adjusted for earn- ings. If, as a result of the improper forfei- ture, an amount was improperly allocated to the account balance of another employee, no reduction is made to the account balance of that employee. (See Example 11.)
Correction Methods. (i) SVP Cor- rection Method. Appendix A, section .05 sets forth the SVP correction method for correcting the exclusion of an eligible em- ployee. In the case of a defined contribu- tion plan, the SVP correction method is to make a contribution on behalf of the ex- cluded employee. Section 2.02(2)(a)(ii) below clarifies the SVP correction method in the case of a profit-sharing or stock bonus plan that provides for non- elective contributions (within the mean- ing of § 1.401(k)–1(g)(10)).
Correction Methods. (i) Return of Overpayment Correction Method. Over- payments as a result of amounts being paid in excess of the limits of § 415(b) may be corrected using the return of overpayment correction method set forth in this para- graph (1)(a)(i). The employer takes rea- sonable steps to have the Overpayment (with appropriate interest) returned by the recipient to the plan and reduces future benefit payments (if any) due to the em- ployee to reflect § 415(b). To the extent the amount returned by the recipient is less than the Overpayment, adjusted for earn- ings at the plan’s earnings rate, then the employer or another person contributes the difference to the plan. In addition, in ac- cordance with section 6.02(4)(a), the em- ployer must notify the recipient that the Overpayment was not eligible for favor- able tax treatment accorded to distributions from qualified plans (and, specifically, was not eligible for tax-free rollover). (See Ex- amples 15 and 16.)
Correction Methods. 66 14.12 Writings.......................................................................................67
