When presented with the opinion from your third-party administrator (TPA) that you have to fix a potentially catastrophic plan error, you have no choice in the matter. You have to do your best to avoid pecuniary harm.
You can pretend to do nothing and play the audit gamble, that your plan and the error won’t be detected on a plan audit. As a plan sponsor, your plan has to work with the confines of the Internal Revenue Code and ERISA. If you have a big error, you have a job to do and the job is to avoid greater financial harm.
