Late Simple contribution
Business has a Simple plan in place. Their CPA does their payroll, the CPA reached out to me and stated that he neglected to submit their deferrals and company match for the 2nd half of 2020. Is there any way for this to be corrected?
Permalink Submitted by Alan - IRA critic on Tue, 2021-06-15 16:45
This error must be corrected by making the missed contributions including calculated earnings which would have accrued had the contributions been made promptly. It appears that errors 6 and 7 in the attached IRS EPCRS guide apply here. Business has to determine if this failure is significant or insignificant. If insignificant, the SCP (self correction program) can be used and that would avoid fees. See following link:
SIMPLE IRA Plan Fix-it Guide | Internal Revenue Service (irs.gov)