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The Voluntary Correction Program (VCP) is a program created by the IRS which allows retirement plans to voluntarily correct mistakes in plan language or administration. Correcting plan mistakes through the VCP may allow a plan to preserve its tax-favored status. There is a user fee for submitting to the VCP. Previously, the fees were based on the number of participants in the plan and ranged from $500 to $15,000. The new fee schedule, effective for submissions filed on or after January 2, 2018, is based on the amount of plan assets and the largest fee is $3,500. The fee schedule is as follows:
Amount of Plan Assets Regular VCP Submission Fee
$500,000 or less $1,500
$500,001 to $10,000,000 $3,000
Over $10,000,000 $3,500