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410(b) violation - how to best correct


Guest Marjorie Rogers

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Guest Marjorie Rogers
Posted

Employer started a 401(k) Plan a number of years ago. Since then employer started a number of other businesses that are members of the same control group but Employer failed to have the members participate in the 401(k) Plan. There probably is a 410(B) violation for 2 or 3 years. Any creative suggestions?

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Marjorie A. Rogers

Sutin, Thayer & Browne

Albuquerque, New Mexico

mar@sutinfirm.com

Guest T Hoffman
Posted

If stock or asset acquisitions were involved, you may be able to use the 410(B)(6)© transition rule for up to two years. After that, 410(B) permits retroactive amendments that correct coverage failures. Otherwise, you will need to hit one of the IRSs EPCRS programs.

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