Auto-enrollment correction Rev. Proc. 2015-28

[Zorro1k]

Does anyone know if under Rev. Proc. 2015-28 a correction can be made if the failure comes from a failure to auto-enroll when implementing a new auto-enrollment feature versus failing to enroll a participant in an existing auto-enroll plan?

If I implement the feature and miss participants, are the reduced correction fees available?

[WCC]

I believe this is your answer from the Rev Proc:

(3) Availability of safe harbor correction method. The safe harbor correction method under section 3.02(1) of this revenue procedure is available only for plans with respect to failures that begin on or before December 31, 2020. At a later date, the Service will consider whether to extend the safe harbor correction method for failures that begin in later years. In deciding whether to extend the safe harbor correction method, the Service will take into account, among other relevant factors, the extent to which there is an increase in the number of plans implemented with automatic contribution features.

(d)Sunset of safe harbor correction method. The safe harbor correction method described in this section .05(8) of this Appendix A is available for plans only with respect to failures that begin on or before December 31, 2020.

[Zorro1k]

I'm not sure that is it. I understand that it is for failures before 12/31/2020. The correction method clearly applies to plans that have an auto-enrollment feature that fail to enroll participants. Can this correction method also be used if a plan starts an auto-enrollment feature in a plan and, upon implementation, fails to enroll participants (as opposed to being a newly eligible participant in an existing auto-enroll plan)?

[Mike Preston]

How are the two legally different?

[Zorro1k]

I don't know that I think they are. This was presented as a distinction at a conference I attended and I'm trying to understand if it is an accurate assessment or not. Based on my reading, it seems that failure does not exclude failures from implementations of new plans or features but I could be wrong about that.

[Mike Preston]

I doubt you are wrong.