Guest ccl Posted April 13, 2009 Posted April 13, 2009 I am having a problem with figuring out how to correct the following: An employer has a 403(b) Plan which has a matching benefit accrual requirement of 1000 hours of service per year. Thus in order to accrue a matching benefit for the year, the employee must have worked 1000 hours or more. The plan has basicially ignored this requirement in practice and has given all employees a match, whether or not they have worked 1000 hours in the year. The employer needs to correct this problem under EPCRS. The plan does have a written document already. How would this be corrected? Thanks!
J Simmons Posted April 13, 2009 Posted April 13, 2009 Probably an EPCRS corrective amendment that removes, retroactively, the 1,000 hour requirement. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
Guest ccl Posted April 13, 2009 Posted April 13, 2009 That's what I thought too but 4.05 of the EPCRS seems to imply that retroactive plan amendments are only for qualified plans and can't be used for 403(b) Plans. Anybody have any imput?
panther Posted December 2, 2010 Posted December 2, 2010 This cannot be corrected as a document failure per Rev. Proc. 2008-50 -- VCP is not available yet to correct 403(b) plan document failures. The IRS expects to allow this when it updates EPCRS (See Notice 2009-3).
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