rocknrolls2 Posted March 10, 2017 Posted March 10, 2017 Client X is a 501(c)(3) organization that maintains a 403(b) plan for the benefit of its employees. Up to now, the plan merely provided for a discretionary nonelective employer contribution. X wants to amend the Plan to allow employees to make elective deferrals and receive matching contributions with respect to the deferrals. A copy of the plan document has been requested from X. In the meantime, the Summary Plan Description already provides for elective deferrals and the SPD is given out to the participants. Assuming that the plan document does not provide elective deferrals, is there an operational violation because the SPD provides for elective deferrals, even though none have been made and even though all employees have been told that there are no deferrals under the plan?
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