Leaderboard

A different thought - is it necessarily goodbye safe harbor? The PLAN does not restrict anything. So the operational error must be corrected, (make up deferrals and match as required under the terms of the plan and the self-correction procedure) and then exclude them prospectively as an excluded class, assuming you can pass coverage testing. I'm no lawyer, but I'm assuming the terms of the employment contract can be modified with the agreement of all parties? Looks like Jpod and I were replying at the same time...

Notifying as a practical matter would almost assuredly be done. Especially to those participants with account balances since they'll be receiving distribution paperwork. But I believe the thrust of the OP is whether is was required which would trigger meeting certain deadlines, etc.

It is a testament to the level-headedness of the thread's participants. Either that or we just enjoy watching an internet version of Don Quixote play out.

I would put any and all D's you think were not reported on the current year's 8955-SSA. I have never seen the IRS really look much at the D's vs now I have had 2 ESOPs under audit from the IRS in the past 2-3 years have questions about our A's. But most important one of the biggest pains is one of those people who have been paid who was reported as an A getting the letter from the SSA saying they may have a benefit due and they demand you prove they were paid. Just search for those threads on this board and the one thing you want to avoid big time is having to search what can be as old as 20 or 30 year old records to find a check or 1099-R to prove they were paid. As far as I am concerned when in doubt if you know the person has been paid but not sure if a D has been done (or you even doubt an A was done) file a D to stop that possible letter. Once again I have never seen someone get in any trouble for filing a D you can show the person was paid. I have seen people spend lots of hours proving to someone they were in fact paid when they get one of those letters. When in doubt D!