I have a client that inadvertently excluded some small bonus amounts and tuition reimbursements from compensation eligible for deferrals (and matches). The plan document requires that these items be included in compensation eligible for deferral. I know that the IRS indicates informally that they want an employer in this situation to pony up the deferrals (even though the employee actually received the cash) and the matches. My question is -- What are the practitioners actually seeing in audits and VCP (formerly walk-in CAPs)? Is the IRS really requiring this, or are they backing off on this and allowing just the matches to be contributed by the employer? Are you seeing any de minimis threshold applied? Any information would be helpful. Thanks.

kodle or anyone, did you ever figure this one out? i have a similar issue.