What is DFVC program?
The Delinquent Filer Voluntary Compliance Program (DFVCP) encourages voluntary compliance with ERISA’s annual reporting requirements and gives delinquent plan administrators a way to avoid higher civil penalty assessments by satisfying the program’s requirements and voluntarily paying a reduced penalty.
What happens if you don’t file your 5500?
The IRS penalty for late filing of a 5500-series return is $25 per day, up to a maximum of $15,000. For returns required to be filed after December 31, 2019, the penalty for failure to file is increased to $250 a day (up to (150,000).
What does DFVC stand for?
DFVC
| Acronym | Definition |
|---|---|
| DFVC | Delinquent Filer Voluntary Compliance Program (US Department of Labor; also seen as DFVCP) |
| DFVC | Desoto Family Vision Center (Southaven, MS) |
| DFVC | Deflation Flow-Volume Curve |
How do I pay Dfvcp?
The plan administrator must also submit to the DFVCP, either electronically or on paper through the mail or by using a private delivery service. If submitting to the DFVCP electronically, follow the calculator instructions for online payment at efast.dol.gov. Use the plan number 888 for all top hat plans.
What is the Voluntary Fiduciary Correction Program?
The Voluntary Fiduciary Correction Program (VFCP) encourages voluntary compliance by self-correcting violations of the law. The program also helps plan officials understand the law and gives immediate relief from payment of excise taxes under a class exemption.
Who is exempt from filing a form 5500?
A Solo 401(k) or “Business Owner Only” Plan Retirement plans covering only a business owner (and, potentially, a spouse) are usually exempt from filing Form 5500. However, if there are eligible employees improperly excluded from the plan, then the form must be filed.
Do all 401k plans have to file a 5500?
The IRS Form 5500 is an annual report, filed with the U.S. Department of Labor (DOL) that contains information about a 401(k) plan’s financial condition, investments, and operation. In general, all retirement plans, such as profit-sharing and 401(k) plans, must file a Form 5500 for every year the plan holds assets.
How do I file Form 5500?
The DOL requires that all Form 5500 annual returns be filed electronically using its EFAST2 program. The agency no longer accepts paper filings, except for filers submitting Form 5500-EZ. To start the filing process, you must log in to the EFAST2 processing system and begin completing the correct version of Form 5500.
How much is a VCP filing?
VCP fees* based on net plan assets (effective for submissions made on or after January 1, 2020)
| Plan Assets | Fee |
|---|---|
| $0 to $500,000 | $1,500 |
| Over $500,000 to $10,000,000 | $3,000 |
| Over $10,000,000 | $3,500 |
Is VFCP required?
No one is required to file an application under the VFCP to correct a violation. Participation is voluntary. Of course, you must take appropriate actions to correct the violation even if you don’t submit an application.
Do small employers have to file a 5500?
Companies with 100 or more plan participants at the start of each plan year must file the traditional Form 5500. Smaller companies that don’t satisfy the requirements to simply file Forms 5500-EZ or 5500-SF must also file the traditional form.
What is the due date for form 5500?
July 31
Due date: the last day of the seventh month after the plan year ends (July 31 for a calendar year plan). Request copies of filed Forms 5500-EZ using Form 4506 PDF (includes instructions).
How do I make payments to the dfvcp?
Electronically submit the filing information and payment to the DFVCP using the DFVC Calculator. After using the calculator, plan administrators can make their payments electronically simply by following the on-screen instructions when the calculator has computed the penalty amount.
What is the penalty for filing late with dfvcp?
The basic penalty under the DFVCP is $10 per day for delinquent filings. The maximum penalty for a single late annual report is $750 for a small plan and $2,000 for a large plan. The maximum “per plan” penalty is $1,500 for a small plan and $4,000 for a large plan regardless of the number of late annual reports filed for the plan at the same time.
Who is eligible to use the dfvcp?
To be eligible to use the DFVCP, a plan administrator of an ERISA plan: Cannot have been notified in writing by the DOL of its failure to file a timely annual report. The basic penalty under the DFVCP is $10 per day for delinquent filings. The maximum penalty for a single late annual report is $750 for a small plan and $2,000 for a large plan.
How do I enter contact information in the dfvcp?
Contact Email – enter the email address of the contact person. Contact Phone Number – enter the phone number of the contact person. Type of Plan – select the type of plan that you are filing for. Please note that Form 5500-EZ filers or Form 5500-SF filers filing as a one participant plan are not eligible for the DFVCP.