For retirement plans (including 401(k) plans), there are 17 specified fiduciary breaches that can be corrected by application to the VFC Program. (One of these can be self-corrected in certain situations, and eligible inadvertent loan failures may also be self-corrected. Two other correctable breaches relate solely to welfare benefit plans.) Eligible breaches include delinquent remittance of participant contributions and loan repayments; various loan failures, including loans at below market interest rates and failures to comply with the lending plan’s provisions for the amount, duration, or level amortization of loans; certain impermissible purchases and sales of plan assets; failures to properly value plan assets when making distributions; and improper payments of compensation and plan expenses.
To dig deeper, visit the original article on the Thomson Reuters blog.