"For the 12/31/2024 plan year, the client has several unresolved compliance issues from the 2022 plan year that remain uncorrected as of 2025. Specifically, there is a 402(g) excess deferral of $2,000 for Participant A, who is a non-highly compensated employee (NHCE), and a 415(c) excess annual addition of $6,000 for Participant B. Based on the records available, neither of these excesses has been corrected or reported to date.

In addition, another plan has two uncorrected issues from the 2022 plan year related to plan-imposed limits. First, a deferral was made in excess of the plan's stated deferral limit (as defined in the plan document), separate from the statutory 402(g) limit. Second, the employer matching contributions were calculated at 3.5% of compensation, whereas the plan document limited the match to 3%. This resulted in an excess matching contribution. As of 2025, neither the excess deferral (under the plan-imposed limit) nor the excess match has been corrected -- the excess deferral was not returned to the participant, and the excess match was not distributed or reallocated to the forfeiture account.

1. What is the appropriate method of correction under IRS guidance, specifically for each of the following issues: the uncorrected 402(g) excess, 415(c) excess, plan-imposed deferral limit violation, and the excess employer match?
2. What penalties, if any, apply to the plan sponsor for not correcting these issues within the applicable correction window?
3. What are the tax implications for both the plan sponsor and the affected participants upon correction of each issue, including income inclusion, excise taxes, and any other tax consequences?
4. What IRS forms are required to properly report the corrections (e.g., Form 1099-R for corrective distributions, Form 5330 for excise taxes, or other applicable forms)?

Clarification is also needed on whether these issues may be corrected under the Self-Correction Program (SCP), considering the time elapsed and the types of failures involved, or whether a Voluntary Correction Program (VCP) filing is required -- particularly for the plan-imposed limits and uncorrected statutory excess."