Safe Harbor starts October 1, fails to offer deferrals

[John Feldt ERPA CPC QPA]

New safe harbor plan was executed timely to begin deferrals and safe harbor on October 1, 2015, plan is a December 31 year-end. They failed to offer deferrals until sometime in November.

Under Revenue Procedure 2015-28, if the problem is found and deferrals start in the 3 month period, no QNEC is needed for the missed deferrals assuming the proper notice is provided?

Seems like that's the case since an Employee Elective Deferral Failure includes a failure to afford an employee the opportunity to make an election.

Agree?

[ETA Consulting LLC]

I agree. The Rev. Proc. clearly creates a rolling 3 month period for the failures, and even goes to identify improper exclusion as one of those failures. Seems a lot different from the old rules; doesn't it?

Good Luck!