"A 401k plan document is written with a $1,000 force out provision for non-responsive terminated participants. The plan recordkeeper (bundled provider) processed force out distributions as if the document allowed for the $5,000 limit rule. 200 participants were forced to IRAs when they should not have been. This error happened within the last two months and was an isolated incident to these 200 participants.

Rev. Proc. 2021-30 now provides more options for retroactive amendments pending certain conditions, one of which is '(i) The plan amendment would result in an increase of a benefit, right, or feature.' Benefit, right or feature is not defined (as far as I know). My thought is that this error does not provide an additional benefit, right or feature. However, do others believe this can be corrected under SCP using a retroactive amendment to change the limit to $5,000?"