The Internal Revenue Service and the Department of Labor offer various compliance correction programs to help plan sponsors avoid significant penalties for non-compliance. Trucker Huss has prepared numerous correction program submissions since the inception of these programs and we often must negotiate any applicable penalty or creative correction methodology with the IRS or DOL. This experience gives us a unique understanding of the correction process.
The various correction programs include:
- The Employee Plans Compliance Resolution System (EPCRS): This IRS program allows plan sponsors of most retirement plans to correct operational and plan document failures.
- The Voluntary Fiduciary Correction Program (VFC): This DOL program allows a plan fiduciary who has breached his or her fiduciary duty to correct certain breaches and avoid substantial penalties.
- The Delinquent Filer Voluntary Compliance Program (DFVC): This DOL program allows plan sponsors to submit delinquent required annual reports on Form 5500 for substantially reduced fees (when compared to the potential penalties for late filing).
If you'd like to know more
- Arbitrability of ERISA Fiduciary Breach Cases
JOSEPH C. FAUCHER and DYLAN D. RUDOLPH, February, 2019 This article was first published by the Journal of Pension Benefits: Issues in Administration, Design, Funding, and Compliance, Autumn 2018, Vol. 26, No. 1. Although the viability of arbitration rather than litigation in ERISA fiduciary breach claims remains to be seen, there are several considerations for employers who […]READ MORE
- Second Circuit Breathes New Life Into Company Stock Litigation
JOSEPH C. FAUCHER and DYLAN D. RUDOLPH, February, 2019 In offering their own company stock as a plan investment option, retirement plan fiduciaries are subject to the same duty of prudence that governs the selection, retention and removal of any other investments. Before 2014, litigation against plan fiduciaries that offered their companies’ stock as an […]READ MORE
- IRS Issues Proposed Regulations Modifying Hardship Distribution Rules
BRYAN CARD, February, 2019 The new year brings significant changes to hardship distributions under Section 401(k) plans and Section 403(b) plans. Following the passage of the Bipartisan Budget Act (the “Act”) in February 2018, the Internal Revenue Service (IRS) released proposed regulations in November 2018 which provide implementing guidance for the new rules and modifications […]READ MORE