More than 54,000 401(k) plans failed their most recent non-discrimination tests by the IRS, according to new data from Judy Diamond Associates.
That means $820 million in 401(k) contributions to highly compensated employees will be returned, putting a dent in retirement savings and exposing the affected employees to higher income taxes.
This year, Enterprise Holdings, the car rental company, had the most corrective distributions, at about $7.26 million.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
