Whop

I thought maybe bringing plan into compliance would be way to get best outcome of a terrible situation for all parties. But I guess it is time to grab my fiddle and play the role of Nero.

The owners of company classify themselves as employees. They have had their son and daughter work and contribute as well. So plan is basically 4 employees considered ownership with 2 non owner employees in plan with 6 excluded current employees. This is not counting former employees that may or may not have been included. They switched firms that administer the plan 6 years ago. So I’m not sure at this point about anything. How the test or self audit allowed situations to occur unless it was intended Would not the fees, fines, taxes, and civil liabilities make this still cheaper to do proper corrections. In order to bring plan in to compliance than allow to be disqualified

Came across situation where business owners have been excluding multiple employees from 401k program. Most employees (5 current employees and unknown number former)were not informed of plan.(Some for over 10 yrs) they are all eligible. I’m not even sure how to start unwrapping this barrel of worms. Most asked about 401k on hire but we’re told wasn’t available. Doesn’t mention in employee benefit package So owners feel they don’t hav to offer access