Failed 2001 ADP and ACP tests - Which Voluntary Correction program?

[Guest ChopperPilot]

The Plan failed it's 2001 (no mistake 2001) ADP + ACP tests. Unadjusted ADP corrections of $8,724 and ACP corrections of $633 are required. What should the Plan Sponsor do to fix this?

[Leopurrd]

per the IRS website:

"In order to fix the mistake under SCP, generally the mistake must be fixed within two years after the end of the statutory correction period (i.e., the 12-month period following the close of the plan year). Unless the failure can be classified as insignificant, VCP must be used after this time"

Too bad it wasn't discovered until now - you had until 12/31/04 to use SCP under EPCRS.

you can find out about VCP here: http://www.irs.gov/retirement/article/0,,id=112981,00.html