VCP Filing

[52626]

I have a client - controlled group. Each employer has their own plan, but for testing purposes, the plans are aggregated.

It appears during some prior plan years, the documents were not updated to add additional participating employers to each plan document.

The recordkeeper suggested filing under VCP to bring the participating employers into the plan - note, the employees in the participating companies have been participating in the 401(k) feature. The recordkeeper is filing a VCP for each plan.

Since they are a controlled group, can one VCP filing be done for the plans. This may reduce the over cost of the filing.

thanks for your assistance.

[rcline46]

Read the new VCP (2013-12) instructions carefully. I think that they say amendments to allow early participation no longer require VCP filings, and adding employers back to the date they should have adopted (signed today) is the same (to me) as a retroactive amendment for early participation.

[Kevin C]

Aggregated for testing purposes sounds like permissive aggregation under 1.410(b)-7(d). If that is what was done, where do you see a requirement that they adopt each others' plans? Before you file under VCP, make sure you really need to.