Reversion of Plan Assets to Employer. (a) Any contribution made by the Employer because of a mistake of fact must be returned to the Employer within one year of the contribution.
(b) In the event that the Commissioner of Internal Revenue determines that the Plan is not initially qualified under the Internal Revenue Code, any contribution made incident to that initial qualification by the Employer must be returned to the Employer within one year after the date the initial qualification is denied, but only if the application for the qualification is made by the time prescribed by law for filing the Employer's return for the taxable year in which the Plan is adopted, or such later date as the Secretary of the Treasury may prescribe.
(c) All contributions made by the Employer are conditioned on the deductibility of such contributions under section 404 of the Code. To the extent that a deduction is disallowed, such contribution, to the extent disallowed, shall be returned to the Employer within one year after the date of disallowance.
(d) Contributions returned to the Employer will not include earnings and will be reduced by any losses.
Reversion of Plan Assets to Employer. (a) Any contribution made by the Employer because of a mistake of fact must be returned to the Employer within one year of the contribution.
