adp correction

[Guest lindamichals]

It was just discovered a refund was made for the 2002 plan year in error. Incorrect data was given in census and the error was discovered when performing trust accounting(unfortunately after the refund has been made).

What is the corrective measure in this case? With the correction, the plan is now passing adp! Thanks.

Linda Michals

[MWeddell]

You've probably made a distribution that violates the distribution restrictions of Code Section 401(k). There is no remedy in the regulations. This is regarded as a qualification issue. You need to consider whether the Self-Correction Program or other correction from Rev. Proc. 2003-44 applies.