Question: When a 4 0 1 ( k ) plan sponsor decides to refund excess pretax and Roth contributions to HCEs to correct a failed ADP

When a 401(k) plan sponsor decides to refund excess pretax and Roth contributions to HCEs to correct a failed ADP test, what procedure is used to proportionately distribute the total refund amount based on the amount each HCE contributed?
a.
Roll over
b.
Reallocation
c.
Dollar leveling
d.
Amortization

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

For this extra credit assignment, you will complete the major forms that you learned about in the rst three weeks of class-~Forms 941, W-3, W-2. 940 and an Annual Reconciliation worksheet-- for a...

Q:

For this extra credit assignment, you will complete the major forms that you learned about in the rst three weeks of class-~Forms 941, W-3, W-2. 940 and an Annual Reconciliation worksheet-- for a...

Q:

Hello I need answer of these questions. DO NOT ACCEPT IF YOU DON'T KNOW THE ANSWERS. IT WORTH 37% OF MY GRADES. I WILL NOT ACCEPT THE ANSWER IF THEY ARE NOT RIGHT!!! 1. Which of the following...

Q:

Question 1.Which of the following plans provide the greatest immediate tax benefit for the participating employee? (1) Roth IRA (2) deductible IRA (3) non-deductible IRA (4) 401(k) a. (1) and (3)...

Q:

Need help with 50 MCQs on 1040s. Need 70% to pass. Serious inquiries only. Thank you. Exam in Progress Exam DT1TG16 - 1040 Income Tax Preparation Questions 50 Passing Score 70% 1. Available filing...

Q:

Need help with 50 MCQs on 1040s. Need 70% to pass. Serious inquiries only. Thank you. Exam in Progress Exam DT1TG16 - 1040 Income Tax Preparation Questions 50 Passing Score 70% 1. Available filing...

Q:

Need help with 50 MCQs on 1040s. Need 70% to pass. Serious inquiries only. Thank you. Exam in Progress Exam DT1TG16 - 1040 Income Tax Preparation Questions 50 Passing Score 70% 1. Available filing...

Q:

This is a single access timed assignment.You have 90 minutes to complete the assignment once it is open.Please select the best answer. Note: this is a timed quiz. You may check the remaining time you...

Q:

Hello, I have the attached assignment due on 11/29. Could you help? TAX CONFUSION AND FORM 1040 TURMOIL It was the night of April 14 and Daniel was pacing furiously around the house muttering to...

Q:

Retirement Planning Final Exam (Chapters 2 14) Which of the following is an example of a qualified retirement plan?Rabbi trust.401(k) plan.Nonqualified stock option plan.ESPP. John has been employed...

Q:

Consider a transformation of a rigid sphere into itself. Show that two points on the sphere end up where they started.

Q:

On January 1, 2011, Pin Industries purchased a 40 percent interest in Sip Corporation for $800,000, when Sips stockholders equity consisted of $1,000,000 capital stock and $1,000,000 retained...

Q:

4 points Item 1 Which of the following statements is true? Multiple Choice A flexible budget is a comparison of actual revenues and costs at the actual level of activity to the actual revenues and...

Q:

Solve B. 6a2-23a +20. a +2 2a2-a-10 2a-5