VCP Submission Kits for Failure to Timely Contribute to a MPP or Target Benefit

The IRS has released a submission kit for plans submitting under VCP where there was a failure to timely contribute to a money purchase or target benefit plan.

Document Excerpt

You can restore the tax-favored status of your MPP or target benefit plan by correcting the failure under the Employee Plans Compliance Resolution System (EPCRS). Make a submission and use the Voluntary Correction Program (VCP) to fix the operational failure if you want IRS assurance that your correction proposal is acceptable or if the Self Correction Program (SCP) is not available to you.  If your submission is approved, the IRS will treat the plan as entitled to tax-favored status and the plan participants will continue to build up their retirement savings on a tax-deferred basis.


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