VCP filing guides?

Hi, we're dealing with a likely VCP situation in a 403(b) plan, where the plan was a) administered with a one-year wait, and b) wasn't properly drafted to exclude part-timers. We have no experience with VCP filings, and were hoping to see if there's a gold-standard guidebook out there on doing them, or perhaps some online resource where we can see other/sample filings.

I think it doesn't strictly need to be 403(b) related, if there's a good resource for 401(k) that would probably help. 

Thanks!

For this - you learn by doing. Use as many of the sample forms available on the IRS website, and construct and assemble and submit according to the instructions in the EPCRS Rev Proc. It tells you the order of the items to be put into the PDF and everything. Those issues are custom and won't be covered completely by the available sample schedules, so you will have to prepare your own from scratch. 

Alternatively - if these people have a missed opportunity to defer - is is cheaper to do a QNEC to correct that error? it will depend on number of years, number of affected people, etc. And might not be eligible for self-correction. 

If you are asking the IRS to allow a retroactive corrective amendment to exclude people, and to forgo a corrective contribution, particularly for NHCE, you will need to make a clear case about why that should be allowed, and include a supporting analysis in your VCP submission. 

If the plan is going to do the QNEC for those who were held out and shouldn't have been (the part-timers and the one year wait) and then amend the doc for future years, and just want the IRS's blessing on the QNEC, then that is an easier write-up for the VCP. 

I don't think I've seen or heard of a VCP being done without an attorney's involvement. Though I suppose some TPAs might have an ERPA or EA or CPA on staff that does them a lot. But that might be more of a reflection of the bubble I work in, than an industry practice. 

So I'd suggest they contact an attorney who can help, if they really want to go the VCP route. 

A good starting point is the IRS web site: https://www.irs.gov/retirement-plans/voluntary-correction-program-general-description

This site also will lead to some pages specific to 403(b) plans.  For example: https://www.irs.gov/retirement-plans/403b-plan-fix-it-guide

If you are looking for a gold-standard resource, among your best bets are the ERISA Outline Book, Wolters Kluwer, or ERISApedia.  Be prepared to pay for a subscription, but the value of the guidance and time-savings are worth every penny.

1 hour ago, Ilene Ferenczy said:

Having said that, I really recommend that you at least associate with someone who knows how to do plan correction work on your first venture into VCP-land.  There are a lot of arcane rules about the filing, as well as things that people have learned over time that are good ideas or bad ideas for ways to approach the correction programs.  Again, if you think that I am making this recommendation just to get business, contact me, and I'll refer you to another law firm for assistance.  I'd rather send you in the right direction.  

As someone who has used Ilene's services MANY times, I can highly recommend them!  I have worked with Ilene, Alison, Adrienne, and several others from the firm and they have always been great.

Thanks so much everyone! I'm definitely going to look into the resources that Paul I and Ilene mentioned. 

This matter popped up for a pro bono client of the firm, and we're shepherding them through it. If anyone with experience wants to partner on a pro bono basis, well I'm always up for meeting new people!

(And to pat ourselves on the back a bit, stopping the bleeding was the first thing we counseled, as they get their ducks in a row on the existing issues.)

PS, with respect to ERISApedia, is the "Plan Corrections eSource" likely what I'm looking for?