Failure to provide deferral opportunity

[Guest ebgroup]

We have a correction in EPCRS for failing to provide a participant the opportunity to defer. Does anyone know where I can find guidance on when this failure has occurred. I am not aware of specific requirements for a non-safe harbor plan to provide notices other than the SPD (and that can happen after the employee is eligible, right?), am I missing something? Are we left to facts and circumstances?

[Guest chuckb]

We have a correction in EPCRS for failing to provide a participant the opportunity to defer. Does anyone know where I can find guidance on when this failure has occurred. I am not aware of specific requirements for a non-safe harbor plan to provide notices other than the SPD (and that can happen after the employee is eligible, right?), am I missing something? Are we left to facts and circumstances?

I believe Rev Proc 2008-50 is the latest version of EPCRS. I would take a look in the examples.

But, off the top of my head, I believe that the correction will involve providing the participant a QNEC equal to 50% of the ADP ratio for their testing group (HCE or NHCE) for the year(s) of the failure. Compensation for the calculation should be taken from the participant's entry date. Also, if the Emloyer provides a match, the match must be made based on assumed deferrals equal to 100% of the ADP ratio.