VFCP for late deposits

[Dan]

We have a large client (3500 participants and $65 mil in assets) who made late deposits in January 2006 for deferral and loan payments withheld in 2005. We filed Form 5330 on these late deposits and the earnings amount was $112. The earnings were put in at the time the late deposits were corrected.

Their attorney advised them to file VFCP to ensure compliance. I think that's overkill. I would appreciate comments or anecdotes.

Thanks.

[HarleyBabe]

I agree. Have done this several times. Never had any issues with DOL and actually had a plan audit on one. The fact that we caught it and filed the From 5330 and corrected the interest was enough for them.

[BG5150]

$112 in earnings for 3500 people? How late was the contribution? Two hours?

[Dan]

They missed their smalled division which has about 15 people who defer in it. They missed one June payroll withholding and it was corrected the following February.