Chris F

First, Dr. X cannot stop the transition by not giving up his position, which I presume is through a brokerage account feature. The trustees have authority over the assets, and they presumably take their direction from the investment fiduciaries. Second, I agree with Austin, his account should transfer easily. I'm not saying you should say who it is, but I'm really curious who RK A. Service agreements seldom get into detail about how the termination of the contract will work, so I'm guessing this function was not addressed in your service contract; however, i would take a look and try to confirm that. At this point, the investment plan fiduciary is in a serious bind. There presumably has been a decision that participants will be better off if you transfer to RK B; however, this move isn't occurring. It can be sort of a cheat on this message board to recommend that legal advice be sought; however, in this instance I think you don't have a choice. You need a legal opinion regarding what to do. Do you prevent the other participants from getting the value of the move or do you prevent this one participant from getting the value of staying until the investment fund liquidates? Get the opinion, then follow it.

RatherBeGolfing, The VFCP is a DOL program. the VCP is the IRS program.

Why are they filing with the IRS? It seems like you can look at all of the investment in the plan, then use the investment with highest earnings for the period. Regardless, if it is absolutely impossible to get any plan related earnings percentage, use the DOL's voluntary fiduciary correction calculator. It has been a long time, but I used it in a VCP filing.

The Form 5330 is a separate matter from whether you can or cannot use VCP to address your delinquent contributions. Any employer who fails to timely deposit contributions resulting in a prohibited transaction must file a Form 5330 and pay the requisite excise tax. A failure to file the Form 5330 results in the continued accumulation of the excise tax - you must file a Form 5330 for the year of the failure and for each year thereafter until you've paid the tax. Look here for more guidance. https://www.irs.gov/retirement-plans/form-5330-corner You may be able to do a self-correction instead of a VCP. Self-correction is available for insignificant failures and certain significant failures. The Revenue Procedure states Insignificant failure - The requirements of this section 8 are satisfied with respect to an Operational Failure if the Plan Sponsor of a Qualified Plan, a § 403(b) Plan, a SEP, or a SIMPLE IRA Plan corrects the Operational Failure and, given all the facts and circumstances, the Operational Failure is insignificant. This section 8 is available for correcting an insignificant Operational Failure even if the plan or Plan Sponsor is Under Examination and even if the Operational Failure is discovered on examination Significant failure - The requirements of this section 9 are satisfied with respect to a significant Operational Failure or a Plan Document Failure if the Plan Sponsor of a Qualified Plan or § 403(b) Plan corrects the failure, and the correction is either completed or, in the case of an Operational Failure, is substantially completed (in accordance with section 9.03) by the last day of the correction period described in section 9.02 Look here for more guidance, including a link to the Revenue Procedure https://www.irs.gov/retirement-plans/epcrs-overview