Voluntary Correction Program (VCP)

The VCP is another of the three correction programs under the EPCRS for correcting errors. The VCP is for the purpose of correcting a retirement plan that has either the language in the plan document or how the plan has run. The VCP is only used for a retirement plan that is not currently being audited by the IRS. To apply to correct the mistakes under this program, a written submission to the IRS must be done, and a user fee must be paid. The IRS then reviews and approves the proposed correction methods for either the plan document or operational errors that if left uncorrected, could result in the plan losing its tax-favored status.

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