Failed ACP Test one year later

[cpc0506]

Client failed the ACP Test in 2009. Instructions were sent to make a corrective distribution of the money. Now it is 2011 and and the client has provided investment statements and the correction was not made. What are the consequences?

Thanks.

[BG5150]

I think you must still do the distributions and then do a 1-to-1 QNEC of the gross distributions per EPCRS. There are several populations you can use for the QNEC.