Hardship suspension

[Guest anne1]

We have an employee who took a hardship in 2005 but was not suspended from contributing. I understand that the IRS has indicated that their preferred method of correction is to forfeit the deferrals and then make the employee whole outside of the plan in an upcoming paycheck, thereby avoiding any distribution from the plan. How would this work in practice? Would the W2 be amended for 2005? I am just trying to think through the logistics of this whole thing.