In-service distribution not provided in document

[KJohnson]

Assume that a profit sharing plan has allowed an in-service distribution when it is not provided in the document. The in-service distribution would have passed the "seasoned money" or five years of participation requirement if the provision had been in the document. Also assume that it is an operational defect that can be corrected under SCP. What do you think of this correction method?

1) Participant repays in-service distribuiton plus earnings.

2) Plan is then amended to provide for in-service distributions prospectively.

3) Participant takes out his total account balance in an in-service distribution.

4) Participant rolls all amounts other than the repayment amount into an IRA on a non-taxable basis.

5) Participant takes the repayment amount directly as a non-taxable distribution because his repayment was done with after-tax dollars and so he is entitled to a basis(or investment in contract) in this amount.

Does this work?