All funded employer contributions, including discretionary matches, Safe Harbor match, Safe Harbor nonelective contributions, and profit-sharing allocations, must be reported in the corresponding column on the compliance questionnaire census to ensure accurate nondiscrimination testing and plan administration. Profit-sharing contributions should only be reported if they were funded in the plan year they apply to.
Steps to Report Employer Contributions:
- Review the Pre-Filled Census: The compliance questionnaire census is pre-filled with contribution data that Betterment has on record. Employers must verify these amounts match their expectations.
- Confirm Accuracy: If an employer notices discrepancies after submitting the census, they should reach out to Betterment so we can assist with any necessary corrections.
- Only Report Funded Contributions: Employers should not enter contributions that were not actually funded in the plan year being tested.
Profit Sharing Considerations: If profit-sharing contributions were funded mid-year, they must be accurately recorded in the compliance questionnaire census for the correct plan year. Contributions allocated but not yet funded should not be reported.
Why Reporting Employer Contributions Matters:
- Determining True-Ups: The numbers reported on the census will be used to determine if any true-up contributions are due.
- 401(k) Plan Compliance: Proper reporting confirms employer contributions follow regulatory guidelines.
- Preventing Errors: Contributions must match actual deposits to avoid compliance issues and corrective actions.
Employers should carefully review the compliance questionnaire census, ensure profit-sharing contributions are reported only if funded, and contact Betterment if corrections are needed.
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