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Lost Earnings & VFCP


sam2012

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We have been using the DOL calculator without filing VFCP.

If you do not file VFCP it seems to be unclear what performance should be used. Does highest performing fund need to be used or can the overall plan return be used? It seems like there are stories of DOL auditors upon auditing using highest performing fund? If you use plan return is there the possibility upon audit that would be changed to highest fund return? In 2012 a health care funds for example returned over 30%. This year returns are very good too.

Has anyone had any bad experiences with the DOL doing a VFCP? It seems fairly straightforward. Do you prepare for you clients? Time commitment does not seem that bad although a few of the narrative questions (#4 & #5) seem a bit too much.

Is everyone in agreement that if you self-correct, the DOL calculator can be used as the basis for the 5330 excise tax?

Thanks!

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