VCP and hardship violation

[Guest jigpsu]

I have an employer who allowed for a hardhip distribution without requiring the employee to exhaust their after-tax accounts first. I know this is a violation of the hardship safe harbor which the plan has adopted. What would be the proper correction method under the VCP? Is the VCP even a possibility?

The only expample in the Rev. Rul. deals with a plan that doesn't yet have a Hardship provision. In that situation you just retroactively amend the plan to include hardships. That wouldn't work here. If anyone has any thoughts, please let me know. Thanks.

[Guest jigpsu]

I'm surprsied no one has come across this situation before. I am still considering a possible "John Doe" VCP submission, but just don't know what the correction should be.

[Kirk Maldonado]

Have you called calling them to get an informal reaction? I've found them to be very helpful in situations like this.