On July 22, 2021, the IRS published a Voluntary Correction Program (VCP) Submission Kit for employers who sponsored a SIMPLE IRA but were ineligible to do so because they had more than 100 employees or sponsored another retirement plan. Employers are only eligible to sponsor a SIMPLE IRA if they have 100 or fewer employees and do not offer any other retirement plan. The VCP Submission Kit provides the steps employers can follow in correcting the mistake of sponsoring a SIMPLE IRA without being eligible.
Specifically, the kit provides a list of the documentation that will be required to apply for VCP relief, including descriptions of the information required to complete a VCP submission compliance statement. The guidance also provides steps on how to submit the VCP application and pay the VCP fee.
Employers who determine that they have incorrectly sponsored a SIMPLE IRA should work with their service provider or counsel to determine if this VCP submission kit is necessary.
VCP Submission Kit – Plan Sponsor Not Eligible for a SIMPLE IRA Plan Under 408(p) »
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
Sign up to have it delivered straight to your inbox.
Sign up