Deferral not submitted

[Guest sbewley]

I have a client which was an employee of a very large company last year. In November my client bought a part of the company he worked for and it was moved to a new company. All of the employees which worked for the part that was purchased were terminated on December 15 and rehired the next day by the new company. Some of the employees still received paychecks until December 31 and deferrals were withheld.

We established a new plan on March 1 and then discovered that deferrals had been withheld for December but never submitted and still remain in the general operating account of the old company. Any suggestions about how this can be corrected without causing a huge problem?