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An error was made in a plan document, which resulted in the omission of a year of service requirement for matching contributions. Client is asking to submit VCP filing asking IRS to approve a retroactive amendment, or to approve the calculations for making up the missed contributions. Can you submit alternative correction methods in one VCP filing for the same error? Essentially, "if not this, then that"? Thanks.

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1 minute ago, Flyboyjohn said:

Don't give the IRS the choice because you know which one they'll choose.

File anonymously and if you have good facts your chance of getting the retro amendment accepted are pretty good.

 

The error was in both the Plan document AND the SPD, so I don't think we have good facts, but the client wants to try.

I am reading Section 10.08(c) of the EPCRS procedures in Rev Proc 2016-51 to mean that we could revise the filing if the IRS rejects our original correction proposal, but any thoughts would be appreciated.

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I agree, don't give the IRS a choice.  Submit the correction method you want to use and they will let you know if it is acceptable. If not, they will tell you. If the IRS comes back with a correction method you don't like, suggest your alternative method.  If they don't like your original correction proposal, you can revise the filing.  

I wouldn't read too much into the SPD having the same error as the document if the SPD was printed from the software used to prepare the document.  If you check the wrong box on the document, it automatically goes both places.  

 

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Good facts would include this being a restatement document and not the initial adoption and any extrinsic evidence that the participants were made aware of the 1 year wait in enrollment materials or other communications. Also check the eligibility rules that were communicated to the recordkeeper.

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