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 US$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. Conoco Phillips and Chevron, two oil companies, made the top five. Allegis Group, a staffing company, and grocery chain Safeway rounded out the top five.
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