Correcting Ineligible Participant Deferrals (Posted April 8, 2005) Technical Tip 142: The following question and answer were from the IRS Q&A Session at the 2003 ASPPA Annual Conference: What is the best method for correcting early entry into 401(k) (i.e., deferring prior to date of eligibility)? Response: The normal corrective method is to retroactively conform plan operation to the plan document. However, it is possible under EPCRS-VCP that a retroactive amendment may be permitted to conform the plan’s terms to its operation if it is nondiscriminatory and otherwise appropriate based on all the relevant facts and circumstances. See Rev. Proc. 2003-44. View all Tips © 2008 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.