Improper Salary Deferrals

[Guest DaveB]

Two sole props each had their own plan. Sole Prop A had a 401k plan and Sole Prop B had a Profit Sharing Plan. In '98 they became partners and created a new plan sponsored by the partnership. All employees were paid from the partnership in '98, but employees of sole prop A continued to defer into sole prop A's 401k plan. This doesn't sound kosher to me. How is this corrected??