early entry in plan

[cpc0506]

New Client for us in 2009 has been allowing all employees into the plan effective first of month following employment. This was just discovered when completing testing work. How do we handle? Can we provide a retro-active amendment to fix. The document indicated age 21 and 1 year of service.

Thanks for your thoughts.

[Jim Chad]

Yes: I am pretty sure that Rev Proc 2008-50 tells you this is the way to correct.