Plan sponsor decides to rollover the assets with no paperwork

[Jakyasar]

Hi

Helping a friend with a problem on a DB plan for a client of theirs.

One lifer DBP, slightly overfunded.

Decides to rollover all the assets into an IRA with no paperwork for termination and distribution election form. Not married.

Slightly overfunded as well.

How can this be corrected, assuming the plan sponsor wants out help? It is over 2.5M in assets, may be 50k or so overfunded which should have been rolled over into the existing DC plan under QRP rules.

I have not dealt with this in many years (sometimes luck can be on our side, rarely in this biz).

[Lou S.]

Over or under the 415 limit? If under it's easier as you can allocate the excess assets in the termination paperwork if the plan already doesn't do it. If over the 415 limit, you have a bigger problem with the assets rolled to the IRA and another operational error from the Plan.

Pretty sure it can be corrected by the proper amendments and termination documentation as well as filling out the distribution paperwork after the fact. 

What I'm not sure about is if this can be self corrected or needs VCP.