FAQ 751: Match Verification--Date of interest calculation on excess

Problem: Just want to confirm if I change the interest date on the Match Verification report to a date later than the plan year end, it will calculate gap period earnings. I wasn't sure if it was calculating gap period earnings or something completely different.

Solution: Yes, it does include gap interest if the date is after the plan year end, however the best earnings calculation to use would be from the ADP/ACP Test since it is most final. The calculation is done exactly the same, and depending on your dates entered, it will calculate gap interest. For example, inputting the date 4/30/2008 caused the Match Verification report to calculate an earnings amount of 1296.79. This is determined based on the following: Excess match of 9019.65 * 2500.00 (source earnings) divided by source ending balance 26843.70-2500 (source earnings) = 926.28 926.28 * 10% * 4 months = 370.51 926.28 interest on excess 370.51 gap interest 1296.79 total interest on excess as of 4/30/2008