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Are you threatening the IRS with sharks with frickin' laser beams attached to their head????

LOL if so can I dislike my own post? Im not sure I agree with FTWs interpretation as to applicable plan years

I agree with RBG. The rule really isn't a "late deposit" rule - it's a "late segregation" from employer assets rule. Not allocating (and then investing it) is more a general fiduciary problem rather than a PT.

Just thinking out loud here... I don't think it is a "late deposit" because it did become a plan asset within the time limit. The fact that it was not allocated to the EEs is a different problem,. but it isn't a late deferral. How hard is it to see what it would have earned had it been allocated correctly?

well, maybe yes maybe no you can certainly change eligibility and even someone who was previously eligible could become ineligible. I suppose in the adoption agreement Special Participation Date a. [ ] Allow immediate participation for all Eligible Employees employed on a specific date. All Eligible Employees employed on shall become eligible to participate in the Plan as of _________ ............. so lets say you only wanted this prospectively, a date of 3/1/2016 could have been filled in, and thus have the effect of a 1 month wait up until 4/1/2016. on the other hand, some document language simply says something like "Anyone who was a participant prior to the effective continues to be a participant, bleh, bleh, bleh"

I'm going to sue them for 1 million dollars!!

FTW just responded to my request from yesterday with the following 1. Does the FTW document allow for us to use forfeitures for SH contributions in light of the proposed rule? ANSWER: No 2. If it does not, will we be able to to tack on an amendment to allow us to do so for the 12/31/2016 plan year? ANSWER: No. This regulation did not make the changes until 2017 so this can only be applied prospectively. 3. if so, when can we expect such an amendment? Since CPAs are already beating down our door for 2016 numbers, we need guidance on this ASAP. ANSWER: We will be releasing an email soon with more details so please watch for that communication.

Thanks. I went over the FTW VS Document and I'm pretty sure it requires an amendment as it appears they did not draft the document to be flexible in case the IRS changed their minds. I spoke to FTW support and they said they were reviewing the guidance and will send out a technical release in a few weeks... Edit: If anyone else uses FTW documents it may speed things up if you submit a support ticket asking for speedy guidance. The more the merrier right :)