Compliance February 11, 2011

IRS Fees Cut for Some EGTRRA Plan Document Filing

February 11, 2011 (PLANSPONSOR.com) – The Internal Revenue Service (IRS) has announced that sponsors applying to its Voluntary Correction Program (VCP) to correct the failure of not adopting a pre-approved EGTRRA plan by the April 30, 2010, deadline may now be able to save some money in the process.

Reported by

Fred Schneyer

According to the tax agency, a discounted fee of $375 applies to sponsors who file a VCP application on or before May 20, 2011 (postmarked within one year of the missed deadline). The applying plans also must:

Have had no other plan qualification failures;
Have 20 or fewer people in their plan.

The EGTRRA plan adoption requirement involved pre-approved 401(k), profit-sharing, money purchase or other defined contribution plan documents. The VCP fee for these plans will be $750 after April 30, 2011, the tax agency said.

Get more! Sign up for PLANSPONSOR newsletters. 

The VCP Submission kit is at http://www.irs.gov/pub/irs-tege/0430_nonamender_submission_kit.pdf.