IL
A forfeiture was charged to my 401k account due to a caculation error by the company that manages the plan. As a result, five months later I received a check for part of my contributions, but not the assocatied match or earnings on the forfeiture amount. I believe that they should correct their error and restore my account to where it would have been had they correctly calculated the ACP test.
This is what I was told by the plan administrator:
"Sentinel calculated our IRC401(m) or commonly referred to as ACP test using the wrong year to date figures for you. As a result they concluded your contribution exceeded the plans 15% allowed. They took your YTD and divided your yearly contribution into it. It was higher then the 15% that the company allows. What they needed to do is confirm those figures below making the adjustment, but they did not. Even though they were wrong, there is nothing I can do to have the forfeiture amounts reversed, it is against the IRS's rules and regulations. As a result, you will
receive a 1099R after Jan. 1st and a check for the before mentioned amount."
Is what they did legal? If not, how should I proceed to have them correct my account.
A forfeiture was charged to my 401k account due to a caculation error by the company that manages the plan. As a result, five months later I received a check for part of my contributions, but not the assocatied match or earnings on the forfeiture amount. I believe that they should correct their error and restore my account to where it would have been had they correctly calculated the ACP test.
This is what I was told by the plan administrator:
"Sentinel calculated our IRC401(m) or commonly referred to as ACP test using the wrong year to date figures for you. As a result they concluded your contribution exceeded the plans 15% allowed. They took your YTD and divided your yearly contribution into it. It was higher then the 15% that the company allows. What they needed to do is confirm those figures below making the adjustment, but they did not. Even though they were wrong, there is nothing I can do to have the forfeiture amounts reversed, it is against the IRS's rules and regulations. As a result, you will
receive a 1099R after Jan. 1st and a check for the before mentioned amount."
Is what they did legal? If not, how should I proceed to have them correct my account.