I am new to this area, so please excuse me if the questions I have below have been answered in other threads, but here is the situation I have. A client is a C corporation with a fiscal year ending June 30th. It established a SIMPLE IRA Plan several years ago and made proper matching contributions and proper employee withholding contributions through July of 2008. Beginning in August of 2008, neither the amount withheld from employees' gross compensation nor the corporation's matching contributions were transferred to the Plan. The employer has the fiscal means to make these contributions at the present time. In accordance with Rev. Procedure 2008-50, is this the type of situation that is correctible under SCP or VCP? If so, which one? I would think VCP given that it affects all of their employees, but I am looking for the opinions of others. Is this the type of situation that is not correctible under the EPCRS program because it is considered a failure relating to the diversion or misuse of plan assets?

If it is correctible, how should the employer go about correcting it? Is a separate correction required under Dept. of Labor rules? Finally, does the employer need to amend any tax returns?

Like I said, I'm new to this area, so please excuse my ignorance. All help would be appreciated. Thanks.

I would start by reviewing the DOL's Voluntary Fiduciary Correction Program. Their website says Simple IRA's covering employees are eligible. There is information there about the VFCP Class Exemption.

http://www.dol.gov/ebsa/compliance_assistance.html#section8

Thanks, Kevin. Is the DOL correction program necessary in light of the EPCRS correction program under Revenue Procedure 2008-50? Thanks again for your help.

Did you find anything in Rev. Proc. 2008-50 that says you can correct late deposits of amounts withheld from paychecks under EPCRS? The following sections indicate to me you can't:





The 2008 employer matching contributions should fall under EPCRS, IF they are late. What was the due date for the matching contributions? You are still in the time period where SCP is available for significant operational failures.