"We have a client that has had someone working abroad for them for a number of years. Technically they haven't been on payroll, since they were living outside the U.S. They have now moved to the U.S. and are working as a normal W2 employee. The question is, what do we need to put in the Plan Document to allow this person to participate in the Plan immediately? Do we have to amend the Plan to say that participants working remotely gain immediate entry into the Plan (while other employees have to wait the typical 1 year)? The issue is that compensation is defined as W2 salary, so technically they haven't been included in the Plan."

"I have a former HCE who took a full distribution of his account last year when he retired. This year we found out that we failed ACP test and need to make corrective distributions. Do we need to cut the former HCE another check? Or is this corrected by deeming last year's distribution as the correction? I'm looking at 1.401(k)-2(b)(2)(v), which says, in part: 'If the entire account balance of an HCE is distributed prior to when the plan makes a distribution of excess contributions in accordance with this paragraph (b)(2), the distribution is deemed to have been a corrective distribution of excess contributions (and income) to the extent that a corrective distribution would otherwise have been required.' I think I am hung up on the 'to the extent that a corrective distribution would otherwise have been required.' Any thoughts about what that language is supposed to mean?"