Rollover Prior to Eligibility

A plan allows rollover contributions once an employee becomes eligible at 3 mos of service.

If the recordkeeper inadvertently allowed 2 rollovers  prior to the participants being eligible in the past year, is a retroactive amendment allowing rollovers immediately sufficient to correct this? 

Should be, especially if these weren't brand new HCEs (like the owner's kid, since no pay in the lookback year) getting an accelerated benefit like that.

Frankly, I would allow rollovers to all employees since the service eligibility is so short. 

khn, about the plan you describe:

In the past, did the plan’s administrator ever deny a rollover contribution because the worker had not yet met an eligibility condition?

In the past, did the plan’s administrator ever allow a rollover contribution of a worker who had not yet met the eligibility condition?

Do the administrator’s decisions in the past suggest anything about what provision the plan’s sponsor might have truly intended?

Is there any evidence—beyond the plan document itself—that shows the plan sponsor intended the plan not to accept a new employee’s rollover, but to allow a rollover contribution for only those who had completed three months of service?

Is there any evidence showing whether the people who acted for the plan’s sponsor read, or didn’t read, the document before the plan sponsor adopted it?

Following what the evidence turns up, might the plan’s sponsor reform or amend the document?

Would reforming or amending the document harm any participant?