The IRS and the DOL offer several correction programs to help plan sponsors avoid significant penalties for non-compliance. A&M has prepared numerous correction program submissions on behalf of our clients, and we typically assist in developing and implementing practical correction approaches. When more than one correction option is available, we work with our clients to identify the option that best fits their situation.
Our service offering is unique. Many law firms assist with filings, but don’t perform calculations, and many accounting firms will do the calculations, but will not assist with the filings. We do both. When we help our clients, we can perform complex correction calculations, and we prepare and submit the filings.
Those programs include:
The Employee Plans Compliance Resolution System (“EPCRS”): This IRS program allows sponsors of most retirement plans to correct operational and plan document failures, which, if left uncorrected, could result in plan disqualification.
- Self-Correction Program (“SCP”)
- Voluntary Correction Program (“VCP”)
The Voluntary Fiduciary Correction Program (“VFCP”): This DOL program allows a plan fiduciary who has breached his or her fiduciary duty by engaging in certain prohibited transactions (such as the late deposit of participant deferrals) to correct those fiduciary breaches and avoid substantial penalties.
The Delinquent Filer Voluntary Compliance Program (“DFVCP”): This DOL program allows plan sponsors to submit delinquent required annual Form 5500 reports for substantially reduced fees (when compared to the potential penalties for late filing).