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I have a client that implemented a Profit Sharing Plan at the end of 2016. The plan document was drafted with the addition of a 401(k) and Safe Harbor feature, to be effective February 10, 2017, as this was expected to be the first pay date from which deferrals would be withheld. The plan sponsor decided to switch platform providers late in the game, requiring all new contract paperwork, and the implementation process in still under way. Now, the expected deferral start date is May 10, 2017. Employees had previously been provided with an SPD and Safe Harbor notice referencing the February 10th date as the date on which they could start deferring. I did not think that we could amend the effective date of the deferrals that was already in a document signed prior to the end of 2016, which left me thinking that this was a deferral failure that was going to be corrected within three months and so I only needed to provide a notice to the employees (there is no match). Questions: 1) The notice requirement under EPCRS for the deferral failure must reference deferral percentages that were to be withheld. Enrollment meetings have not occurred yet so no deferrals have been elected. So, am I going about this all wrong - is this not the way to correct? 2) Is it possible to just amend at this point to change the effective date of deferrals and safe harbor to be May 10, 2017 with no additional notice or correction for the employees? The thing is, I am sure that this happens ALL the time with start-up plans. For a multitude of reasons, the plan may be delayed in getting set-up and ready for deferral submissions or enrollment meetings are delayed. 3) What do you do in this situation where deferrals don't start on the effective date referenced in the plan document? Thank you so much!

New safe harbor plan was executed timely to begin deferrals and safe harbor on October 1, 2015, plan is a December 31 year-end. They failed to offer deferrals until sometime in November. Under Revenue Procedure 2015-28, if the problem is found and deferrals start in the 3 month period, no QNEC is needed for the missed deferrals assuming the proper notice is provided? Seems like that's the case since an Employee Elective Deferral Failure includes a failure to afford an employee the opportunity to make an election. Agree?

Employee A elects to contribute $1,000 for 2014. If the employer misses the deferral and corrects it by making a 25% QNEC or $250 in 2015, does the QNEC get included for deduction limit purposes? IF so, is it included for 2014 deduction limit or 2015? Is it included for annual additions limit? What if the employer wanted to make the employee whole by making a $1,000 QNEC? These are violoation correction QNECs not QNEC to pass ADP so I was wondering if the rules were different. Thanks