Weird situation...

[stevena]

I have a client that I have been trying desperately to get census for 2004 to do his 5500. He had a new plan effective 10/1/04. It was a SH plan with the SH match. Employees all filled out enrollment forms, the plan was set up at the mutual fund company, and the safe harbor notice was handed out.

Here's the problem...he never started the deferrals (thus the lack of census!). I am not sure why, but it seems he just didnt get around to it.

Actually, he is just now getting around to having the deferrals taken out of employees checks (October 2005!).

I think I should get new election forms signed, but I have no clue how to handle 2004?

I have never run into this, looking for advice??

thanks!

[stephen]

Maybe it's just me but if I receive a safe harbor notice and fill out an election form I think I would notice before 1 month went by that nothing was being taken out of my check and that I was not receiving statements and that nothing was being taken out of my check...

As for correction perhaps depositing 4% of compensation with earnings for the staff.