Early Participation of HCE

[BLM]

Employer allowed an HCE (owner's son) to begin deferrals sooner than the employee met the eligibility requirements and reached an entry date. Plan is Safe Harbor Match and such matching contributions were provided.

A retroactive corrective amendment seems available if the affected employees are predominately NHCEs. However in this this case the only affected employee is HCE.

How to correct?

[Lou S.]

Expensively amend the plan to bring in short service NHCEs and give them a QNEC?