![]() In addition, I have included source files for all data pulled as part of the project. Thus, I was asked to create this project which perfectly follows the rules of the VFCP but also allows an indeterminant amount of participants to be enterred at once.įor your convenience, I have extracted the VBA code and included it as a separate file, just in case you didn't feel like opening a macro enabled excel project from somebody who you've never met. The manual data entry would've taken far too long. ![]() The firm I worked for required a settlement to be calculated in which several thousand participants were involved. The IRS has provided a tool on their website to calculate the damages, but the tool requires that each account be enterred manually, one at a time. The IRS created the VFCP to allow fiduciaries to independently assess the damages owed to clients for lost earnings on these funds. Retirement plan Fiduciaries routinely fail to invest clients' funds into the correct sources by the required dates. This is an Excel VBA Project which was created to complete calculations for the IRS Voluntary Fiduciary Correction Program. You can also individually check new entries against the calculator found at the link provided below. In the Calc tab there is a full table of potential entries with correct values already filled in. ![]() When ready, hit alt+f8 and run either smallCalc or LargeCalc for individuals or group calculations respectively. Use the Calc tab for an individual, use the largeCalc tab for multiple participants. Visit our News Library to read more news stories.VFCP-Calculator To run the project, provide : In addition, the current version of VFCP has reduced the documentation requirements, added correctable transactions, and eliminated the requirement for actual rates of returns.įor more information on this and related topics, consult the CCH Pension Plan Guide. If the transaction involves late deposits of elective deferrals, there is no need for an independent appraiser or fiduciary. There is also a waiver of IRS excise taxes, interest, and penalties for certain prohibited transactions (including late deposits of elective deferrals) corrected under the VFCP provided special rules are followed, and EBSA sends a no-action letter stating that it will not initiate a civil investigation under Title I of ERISA for the transaction described in the letter and providing relief from the civil penalty of 20% of the applicable recovery amount under ERISA §502(l). EBSA provides an online calculator, a model application, and a checklist to use. ![]() For late deposits, however, Heming said that it is now cost effective to use the VFCP. ![]() Plan administrators have been advising clients to self-correct without going through the VFCP because self-correction was simpler, easier, and less expensive, according to Heming. Heming said that the VFCP has not been widely used. Matheney is the Regional VFCP Coordinator for the San Francisco Region of the Employee Benefits Security Administration (EBSA).ĬCH Note: In 2006, EBSA adopted a final version of the VFCP with modifications proposed in 2005. David Matheney, also speaking at the NIPA Annual Forum & Expo, noted that the DOL will process 2,000 VFCP applications this year. Ryding is head of sales and marketing for Truog-Ryding Company, Inc., and Heming is a partner with Reish, Luftman, Reicher & Cohen. The Voluntary Fiduciary Correction Program (VFCP) is a “great” program and plan fiduciaries/ sponsors who have plan violations that can be corrected under the Program should start using it, according to Marilyn Ryding and Martin Heming, speaking at the 2007 National Institute of Plan Administrators (NIPA) Annual Forum & Expo in Las Vegas, NV on May 8, 2007. CCH® PENSION AND BENEFITS - 6/21/07 Practitioners tout advantages of final version of Voluntary Fiduciary Correction Program ![]()
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