Introduction to the Voluntary Fiduciary Correction Program

The Voluntary Fiduciary Correction Program (VFCP) is a long-standing initiative by the U.S. Department of Labor (DOL) that allows plan sponsors and fiduciaries to voluntarily correct certain violations of the Employee Retirement Income Security Act of 1974 (ERISA) without facing enforcement action or civil penalties. The program provides a structured process for correcting fiduciary breaches related to retirement plans, such as late deposits of employee contributions or improper plan expenses, while promoting compliance and protecting participants’ benefits.

Effective March 17, 2025, the DOL introduced a self-correction component (SCC) to the VFCP designed to streamline the correction process. This simplified process allows plan sponsors to correct specific violations without the need to submit a full VFCP application.

Find more information here.

Rhys Lowe, CPA, CFE

rlowe@hhmcpas.com

423.756.7771

Employee Benefit Plans: Catch Up Contributions

Beginning January 1, 2026, new rules under SECURE 2.0 will significantly change how certain employees make catch-up contributions to retirement plans. Highly Paid Individuals (HPIs) will be required to make their catch-up contributions on a Roth basis.

Read an overview of all the changes and impact they will have here.

Jon Finlay, CPA

jfinlay@hhmcpas.com

423.756.7771

Guidance on Filing Form 5330 Related to Excise Taxes

Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, is used to report and pay excise taxes on certain prohibited transactions, including those specifically defined under the Employee Retirement Income Security Act of 1974 (ERISA), as well as other failures related to employee benefit plans. While the Form 5330 is not a form most plan sponsors or employers file regularly, it becomes necessary when specific compliance issues arise.

Find guidance on the 5330 here.

Understanding Long-Term Part-Time Employee Eligibility Under SECURE Act 2.0

The SECURE Act 2.0, short for Setting Every Community Up for Retirement Enhancement, is a continuation and expansion of the retirement efforts that began with the original SECURE Act of 2019. Passed into law in 2022, SECURE 2.0 is designed to broaden access to retirement savings, increase flexibility for plan participants, and simplify plan administration for sponsors.

Plan sponsors must ensure accurate eligibility monitoring to comply with inclusion rules starting in the 2025 plan year.

Read the key highlights and employee revisions here.

Grant Rice

grice@hhmcpas.com

423.756.7771

IRS Proposes New Rules on Retirement Plan Forfeitures: What Employers Need to Know

In February 2023, the IRS released proposed regulations that directly impact how employers handle forfeitures in qualified retirement plans. These changes apply to defined contribution (DC) plans, such as 401(k)s, as well as defined benefit (DB) pension plans.

Read what has changed and how it impacts employers here.

Rachael Yager, MAcc

ryager@hhmcpas.com

423.756.7771

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