Restorative Payments Made to a Qualified Plan

[Guest Edward McElroy]

I've read the PLRs dealing with situations where an employer may make a restorative payment to a qualified plan. Under certain circumstances such a payment is not considered a contribution subject to 401(a)(4), 404, 415 and other requirements. The PLRs all seem to indicate that a genuine controversy must exist (threat of lawsuit, DOL investigation) What about when a plan sponsor knows of a potential fiduciary breach. May plan sponsor make restorative payment when no participants are aware of potential breach? Any thoughts? Thanks. Ed