403(b) Missed Deferral

[Randy Watson]

A 403(b) plan failed to follow participant salary deferral agreements. Is this eligible for a VCP submission? I assume this would fall under the 5.02(2)(ii)(a)(xii) of 2008-50 as a "failure to satisfy the applicable requirements under 403(b)". Do you think I'm wrong about that? What about the corresponding matching contribution that should have been made? I'm concerned that the IRS won't rule on the matching contribution element since it doesn't appear as though the failure to make the full match in accordance with the plan's terms is eligible for VCP for a 403(b) plan. Would the IRS rule only on the "missed deferral opportunity" correction?