What is the deadline for adopting a corrective 11(g) amendment to fix a coverage failure?

The deadline for adopting a corrective 11(g) amendment to address a coverage failure is 9.5 months after the close of the plan year. This timeline aligns with the IRS guidelines that allow plan sponsors to correct certain operational failures, including coverage failures, within that specified time frame to ensure compliance with nondiscrimination requirements under the Internal Revenue Code.

This 9.5-month period provides plan sponsors with sufficient time to assess and address any discrepancies in coverage that may exist between highly compensated employees and non-highly compensated employees. By adhering to this deadline, sponsors can implement the necessary amendments without jeopardizing the qualified status of the plan and can continue to offer benefits that meet the regulatory standards set forth by the IRS.