Safe Harbor Contributions Not made

[Guest SWH]

I have a plan that has not made their safe harbor contribution for 2005 and 2006.

Not exactly sure how to handle this. The document states that the contribution will be made, so I don't think that I can just "assume" (always dangerous to do, anyway) that we "lose" SH status and apply the ADP test because then I'm not in compliance with my document. Document is silent on the matter.

I don't think that I can just make the SH contributions now and let the client go on their merry way, because of the 12 month limit to get the SH contributions into the plan.

At a loss! Anyone got any thoughts, suggestions? A hammer so that I can hit myself over the head? Or better yet, hit the client over the head!

[Tom Poje]

under EPCRS an 'insignificant problem' depends on number of participants involved and number of years.

I'd say you fail, so you fall under 'significant operational failure'.

this is described in Section 9 of the EPCRS.

I just attached the EPCRS instructions under another posted message 'failing top heavy test' or something like that. grap a copy of that and read. section 9 starts somewhere around page 35.

only you can determine if you feel comfortable using EPCRS to self correct the problem.