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A plan failed the ADP test for 1/1/06 to 12/31/06. After distributing the refund, it is found that part of the HCE's match must be forfeited.

The plan sponser realized that this should have been done for the 2005 plan year, but wasn't. One of the HCE's who received an ADP refund for the 2005 plan year should have had some of his match forfeited.

Since it has been over a year since the 2005 ADP refund was made, does anyone know the ramifications of not forfeiting the match would be? I don't see that there is a "deadline" to have to funds forfeited. And I don't see anything in the EPCRS about this.

Anyone have any thoughts on what the plan sponser should do?

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