Entry section of adoption agreement was left blank.

[Moe Howard]

Employer filled out GUST adoption agreement several months ago. The "entry" section of the adoption agreement allowed the employer to choose from various entry dates .... but the employer neglected to choose any of the methods offered in the adoption agreement (he left the section blank).

Shortly thereafter, when allocating the current year (2001) profit sharing contribution ..... only one new eligible participant entered the plan in the current year. The new participant's allocation was made (by an outside CPA that was hired to prepare the employer's corporate income tax return) on the basis that new participant entered the plan on the first day of the first month after he had completed the 12 month service requirement. The contribution was made and the portion allocated to him presently sits in his participant account.

After all the above took place, it was discovered that the adoption agreement section had been left blank and the the CPA had taken it upon himself to concoct an entry date choice (of first day of first month after meeting 12 service requirement) to use for allocating the contribution.

My Questions:

1) Is the plan in violation of anything ?

2) Can anything be done to now choose an entry date of "the 1st January 1 or July 1" after the 12 month service requirement.

3) If an entry date in 2) above is used ..... can the employer reallocate the year 2001 contribution and get some of the contribution back from the new participant's account ?