Failed ADP Test from 2008

[cpc0506]

Help.

Have a client who never returned the funds for a failed ADP Test for 2008. They also did not have an audit done for the Form 5500 for that year (large client over 200 employees). They are now trying to fix he 2008 Form 5500 by attaching an auditors report. The auditor asked if the funds were returned for the failed ADP Test. Of course, they were not.

What are the options the plan has to fix the 2008 failed ADP? I know that we have passed the one year mark but they have also passed the 2 year mark as well. Please advise.

Thanks.

[QDROphile]

The answer is always EPCRS, Rev. Proc. 2008-50.

[Laura Harrington]

The answer is always EPCRS, Rev. Proc. 2008-50.

FYI: for ADP/ACP failures, the 2-year time limit on correcting significant failures through SCP does not start ticking until the 12-month regulatory correction period has ended. So let's assume this is a calendar year plan, PYE 12/31/2008. The 12-month regulatory correction period ended 12/31/2009. The two-year limit on significant failures ends 12/31/2011. So you still have time to fix this under SCP.