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You are out of luck on 2019 - they are not going to "correct" that as you requested. You may be entitled to a corrective plan contribution from the employer directly to your account - one of the links above describes that as a QNEC of 50% of what should have been withheld from your check adjusted for earnings. That basically would amount to free money so it's hard to complain about that. Without knowing all of the details of your plan (Auto Enroll Plans have some modified rules that could result in a smaller correction), I would reference the section quote above to your HR and request that correction and see where it goes. Since you were willing to post up here, let me ask you a question that all of us in the pension comunity ask ourselves frequently. How do you not notice that 20% of your income is not being withheld from your paycheck? You never, not once, looked at a paycheck stub?

The correction principle is to put the plan in the same potion had the error not occurred. So if, say, when the $100,000 was liquidated, 25,000 shares were sold. If it only takes $95,000 to repurchase those shares, then so be it. Tougher to calculate though, are investments that pay dividends or capital gains directly to the plan. What happens if those 25,000 shares were sold in September and 250 more shares would have been added to the account as a capital gain on December 28? Should the particiapnt be required to re-purchase 25, 250 shares (regardless if the share value went up or down)? I guess that's why it's acceptable to use the plan's rate of return instead of the exact gain/loss...

See 1.415(c)-2(g)(8): (8) Back pay. Payments awarded by an administrative agency or court or pursuant to a bona fide agreement by an employer to compensate an employee for lost wages are compensation within the meaning of section 415(c)(3) for the limitation year to which the back pay relates, but only to the extent such payments represent wages and compensation that would otherwise be included in compensation under this section.

Unless the rules have changed they can roll over to an inherited IRA. Distributions due to death are exempt from the 10% ( I believe a code 4 is used on the 1099-R along with another code). Yes - any distribution eligible for rollover is subject to the mandatory 20% withholding. Since this distribution is eligible for rollover, it follows that the 20% withholding rule applies.

You ar emissing nothing. Let the investment company know the loan was treated as a distribution and a 1099-R has been issued and they should update thier records accordingly.

Thank you for your responses. Just an FYI, I spoke with an IRS agent this morning and she said the IRS receives these requests all the time and that they approve them when an employer can show intent to open the plan with items such as corporate minutes, email discussions, deposit of funds to a plan trust, etc. I explained that it is an owner only plan and she said that didn't change her response. So, here's hoping!