Originally Posted by pb4uski
Or are they adjusting the 21% to 0% on the eighth statement? and reversing the match as well?
Statements are bi-weekly, 1st was 1/10/14
Statement 1 & 2 elective deferral at 21% (as I had directed)
Statement 3-7 elective deferral at 5% (as I had directed, to fully utilize match)
Statement 8 elective deferral 21% (my direction remained 5%) Error #1
Statement 9-11 elective deferral again at 5% (as I had directed)
Statement 12 elective deferral -11% (my direction remained 5%) Error #2
I had advised our local payroll about the statement #8 error as soon as it occurred, I wasn't really all that worried about it just alerting them to the discrepancy.
What roasts me is their compounding of errors by "refunding" of my money and having a negative 11% deferral on the most recent pay statement. I don't think that is how the IRS instructs Plan Administrators to do that
. The method used makes the deferral amounts come out right, but effectively denied me the matching contribution for the most recent statement. Retiring in a few weeks would appear to take the option of a true-up correction off the table too.