Additional funding due on Plan that is terminating

[MaryM]

We have a safe harbor 401k plan that has terminated this year. We have paid everyone out in the past few months. We just found out that the employer gave us the wrong compensation for the final compensation to use for the Safe Harbor Non Elective contribution. The brokerage company that held the assets has closed all the accounts. Can the employer just issue checks to the various IRA's of the participants to make them whole. Or do we need to open a new account with said brokerage to pay out of that account to the Participants. There are about 25 Participants that would be due an additional amount.

[K2retire]

Why not open a bank account in the name of the plan and make the distributions to the participants from there?

[MaryM]

Thanks, I had suggested that but wanted to hear others ideas and or experience.