Incoming Calls
Ptp calls to ask why they received a check they didn't request.
1. Open their contact in FD and check for a distribution request
2. Open the company contact they are a ptp in or search their name in FD. Look for a Testing refunds ticket. If their name is listed, that's what the check is for.
3. if needed, confirm the amount in Innopay
Explain the check was issued is because the plan they are a ptp in failed testing required by the IRS and DOL.
HCEs cannot defer more than 20% on average over the NHCEs. If they do, we either have to reclassify some of those deferrals as catch-up (if the ptp is over 50 and has room to do so) or we need to refunds some of the deferrals to the HCEs.
To cure the failure, the plan must return to you a portion of the 401(k) and/or matching contributions made last year, plus/minus the earnings.
If they did not receive the letter, it can be resent. Pull it from the Contributions, Testing Results & Refund Letters ticket.
Frequent PTP Questions
Why am I receiving this check?
I thought I was under the contribution limits, was I wrong?
How much can I contribute this year to prevent a refund check next year?