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Proper correction for failure to offer all the forms of benefit at distribution


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Guest HelpINeedSomeBody
Posted

An ESOP was amended into a profit sharing plan. TPA switched distribution forms to the typical profit sharing form for distributions without being noticed by the employer until recently. Plan states that the participants have a choice of cash or employer stock. Thus, former participants of the ESOP have not been given the opportunity to elect to receive their distributions in employer stock. If you made an application to the IRS under VCP, how would you recommend correcting the problem. We really don't want to go back to each former participant and know give them the option.

Guest b2kates
Posted

not sure of your question,

are you saying a COBRA beneficiary is disabled but did not submit proof within 60 days of COBRA, but during the 18 months period.

Guest HelpINeedSomeBody
Posted

You responded to the wrong message board.

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