Approvals

All account transactions - including distributions and loans - must be properly documented. Approval of each transaction cannot be based on information from only the participant. Therefore, we use information from the participant and the provider(s) to approve transactions. This helps employers meet the Treasury Regulations about transaction approvals.

Monitoring of Plan Contribution Limits

We provide ongoing monitoring of contribution limits for Plan participants across multiple providers. This helps ensure that contribution amounts do not exceed allowable amounts. It also lowers the risk of excess contributions. We will notify both the Provider and the employer if there is an excess contribution.

Excess Contribution during the Current Calendar Year

If discovered within the same calendar year, we will request that the:

• Provider refund the excess amount to the Employer
• Employer stop payroll deductions
• Participant complete a new salary reduction agreement

Excess Contribution during a Previous Calendar Year

If discovered after the end of the calendar year, we will request that the:

• Provider process a corrective distribution to the Participant
• Participant complete a new salary reduction agreement