Employer is suffering real financial hardship. They cannot fund the 2013 3% safe harbor contribution. What do we do here? My thinking is that this is an Operational Failure and the Plan should file under EPCRS. Proposed correction would be to retoractively amend the Plan to remove Safe Harbor provisions. I'm questioning whether IRS would approve this proposed correction because this would clearly not put participants "back where they would have been had the operational failure not occurred".
Is there any solution here?
Thanks.