EACA error - participant thought she opted out

[Guest persie]

This 401(k) plan has an EACA at 4% of compensation. A participant has come forward in mid-April who says she opted out of the auto-enrollment at the beginning of the year, but she has had deferrals withheld anyway. The 90-day window for permissible withdrawals has passed. Nobody can find the participant's signed election form that states she opted out. The office manager believes the participant, but can't find the signed paperwork. The participant wants her money refunded from the plan.

Can the plan refund the participant's deferrals even though the 90 day window has passed? Can the employer assume responsibility for the error, since they lost the signed paperwork?

Any insight is appreciated!

[QDROphile]

I would not self correct. The 90-day window seems to be a built-in safeguard for election errors involving oversight. Despite the office manager's faith, I think the presumption would be that a protest after 90 days is not credible or not effective. If the plan had the timely election form showing an election of zero deferral, the conclusion might be different. The plan can always ask the IRS to approve the distribution.

[Guest persie]

Thanks, QDROphile.