Self Correction or VCP?

[ElaineW]

There is a plan where the existing document is profit sharing only- it does NOT include 401(k) provisions. Well, last year they made deferrals, and according to them, they have W-2s showing deferrals. I believe based on there being W-2s showing deferrals, there was an intent for the plan to be amended to include deferrals, but that was not done. Can the plan be amended retroactively to reflect the way it was operated and would this also have to go through VCP?

[Bri]

I'd suspect VCP would be needed for that.

(I was thinking outside the box, though - fix the W2s, make the employees whole through payroll, and keep the amounts in the plan as profit sharing allocations, as long as the document allows individual allocation groups....or you do an -11g amendment to conform....AND you still have to pass 410b/401a4.  Might be easier to just submit and pay a VCP fee, though.)

[BG5150]

Would say VCP, too.