Did your retirement plan overpay a participant?

What should be done if a qualified retirement plan inadvertently makes an overpayment to a participant or beneficiary? The law says the plan must be made whole. The IRS has guidance on what to do. The plan can seek a corrective payment from the participant or beneficiary in a lump sum or installments. If this is not done, the plan sponsor (the employer) must repay the plan and notify in writing the participant or beneficiary that the overpayment does not qualify for any special tax treatment (e.g., a tax-free rollover). #IdeaoftheDay

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