401(k) ADP Compliance??
I have been employeed by a rather small technology consulting company in New York (about 30 people of which many are on visa from India) for the past three years. I regularly contribute the my 401(k) plan despite the lack of a corporate match and have maxed it out each of the past three years. I make a decent salary compared to the sponsored aliens, and I do not believe any contribute to the 401(k) plan as they have little use for a retirement plan in the United States.
I recently received a check in the amount of roughly $4,000 from my plan sponsor. This check was taxed at 10% and described as a withdrawal for an "EXCESS CONTRIBUTION CURRENT YEAR." I called the plan administrator and they told me that the check was due to ADP compliance failure and that I was considered a HCE. I found this laughable, because while I might make more that the average Indian developer, I don't make nearly the amounts that some of the executives make.
While I'm not asking for free advice, I am asking for a teaser of what case, if any, I have here and what my rights may be in such circumstances. To me, if the government says you can conribute 14% this year, then I should be able to contribute 14%.
Thank you in advance.
Answers (1)
Your rights under any type of pension plan are really defined by the plan, and not necessarily what is permitted under applicable federal law and regulations. Before any attorney can begin to assess whether you have any claim against a plan, you first need to get a copy of the "summary plan description" for the 401(k) plan you are complaining about.
posted by David M. Lira | Apr 8, 2005 11:09 AM [EST]
Answer This Question
Sign In to Answer this Question
Related Questions with Answers