Sidney

There is an upcoming conversion to another 401(k) plan provider/trustee There are quarterly auto-enrollments into the plan. A notice will go out shortly advising of the January 1st entry into the plan. This notice will be sent by the current plan provider. Because of the ACA provision, participants must have 30 days to make an election or they will be defaulted in at 3%. The switch to the new plan provider will occur on December 20th. There will be a blackout period beginning December 15th, ending January 15th There has been a sudden realization that the enrollment window has now shortened from December 1st to December 14th. Participants will not have 30 days to make an election. Question: Any (!!) guidance will be appreciated. For example, would it be prudent to amend the plan to provide for a one-time extension of enrollment into the plan until after January 15st.

Kevin, Your post is enormously helpful and appreciated. I've looked at the site you recommend, and that is a helpful summary.....to be saved for reference if (or, shudder, when, if occurs again). Thank you, Sidney

Would it be handled this way? A corrective QNEC should be made that is 40% of the ACP for the employee's NHCE group times the employee's compensation for the 6 months that the employee should have been permitted to participate (had he been so advised, and acting as though the participant would have chosen to participate). 2016-51, Appendix A .05(2)(e).

There is no auto enrollment. A employee should have been permitted to enroll in the plan on Jan 1, but was not notified of the opportunity to enroll. The failure was discovered July 1. The employee has stated that he does not want to participate in the 401(k). Even though the employee has said he does not want to participate in the 401(k), I think a QNEC is needed. I think EPCRS states that a QNEC of 25% of the ADP percentage for the NHCE group for the year of exclusion multiplied by the employee's compensation for the year is appropriate, but 1) is a correction necessary if the employee chooses to never enroll in the 401(k)? And 2) do we wait until the end of the year to make the correction, because we won't know his compensation for this year until the year is over. I've looked at Rev. Proc. 2016-51 but it doesn't seem to address this fact pattern. Thank you very much.

Austin, Great information. Thank you much. We are going to do a restatement. With appreciation,

Austin, Thank you very much for your guidance. May I please ask a follow-up?: Because this is a MEP, will an amendment of the plan do, or is an entire restatement necessary, in your opinion. And, again, your time and information are greatly appreciated, Sidney

A Lead Employer no longer has participating employees and will be terminating from a multiple employer plan. The plan provides for amendments, but is silent on changing the Lead Employer (named fiduciary) to another participating employer (to be determined). Does anyone have general guidance to offer on the necessary documentation/paper trail to accomplish this? All guidance will be greatly appreciated..... I'm not finding anything on point in my research. Thank you