Self Correction Available?

[Christine Roberts]

Are SIMPLE plans susceptible to self-correction under APRSC/EPCRS?? E.g., an under-contribution for the 1998 plan year.

Employer contributed flat $300 per participant in lieu of 3% matching contribution.

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[This message has been edited by Christine Roberts (edited 03-15-2000).]

[Gary Lesser]

No, but IRS may entertain a more informal closing procedure at the District level. Contact the EP Chief Technical or the Division Chief. If not, the plan was not good for that year and all contributions should be treated as wages on amended Form W-2. If self-employed, Form 1040 and schedule C (or F) will need to be changed. SIMPLEs are very unforgiving.

[This message has been edited by Gary Lesser (edited 05-17-2000).]