We have a client with a profit sharing plan with term life insurance. In checking the incidental benefit limitation, there are 2 participants whose premiums exceed the 25% limit. We have looked at all contributions (and forfeitures) allocated to the participant's account, and all premiums paid from the participants account, going back to the participant's original date of participation. My question is what, if any corrections need to be made for this plan year? This is a 12/31/99 calendar year plan.

I'd appreciate any input on this issue.