elmobob14

Our nongovernmental 457(b) plan suffered an operational failure where one participant contributed in excess of $15,500. This has been caught by the IRS on audit. The IRS is stating that the Plan will be disqualified for this small operational error. Voluntary compliance is not available under EPCRS, do you guys know of any way to correct this error without disqualifying the plan?

As you probably know, there are compelling arguments to be made that the Mass cafeteria plan requirement is preempted by ERISA. How are your clients reacting to this ambiguity? Are most taking a wait-and-see approach, hoping for preemption, or are they complying with the Mass requirements pending ERISA litigation?