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Failure to Contribute in Multiple Employer Plan


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Guest Thomas2006
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Several unrelated employers maintain a multiple employer plan. Plan calls for a 3% safe harbor nonelective contribution in 2008. Employer A is unwilling/unable to make the contribution. Does this ruin the entire plan? Can the multiple employer plan sponsor kick this employer out and avoid ruining the entire plan? Should the plan sponsor make a contribution on behalf of Employer A?

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