[brianbre311]

I started a new job in October of 2008 as their plant manager. The facility is located in New York State. As the plant manager, they thought they would offer me all the benefits of a regular employee without going through the probation process as the regular hourly employees do. They recently found out that this was not possible with regard to the 401K. I started contributing as soon as I started work. They have reimbursed me for 2009 deposits but are unsure how best to give me back my 2008 deposits. The main company is Canadian owned and located in Montreal. They are looking to me to help them get this straightened out. Meanwhile, my money is sitting in limbo. I am not entirely sure the correct folks to ask on this matter, and am hoping that someone might have the answer I am looking for.
Thanks
Brian

[ebaines]

I've been waiting to see if anyone else would venture an answer. Since no one has, I'll hazard an answer, although I am not an expert on this situation.

I would think your employer would refund you your 2008 contributions via check, and then issue you a corrected W2 for 2008 that does not show any 401(k) contributions. This is what happens if they had to refund a portion of your 401(k) contributions for not meeting the tests for how much "highly-compensated" employees contribute. They had until March 15 2009 to make such corrections for tax year 2008, so since we're beyond that time frame now your employer will probably face a penalty from the IRS for messing this up.