DOL Proposed Rule: Self-Correcting Delinquent 401(k) Contributions

(from Society for Human Resources Management) The U.S. Department of Labor's (DOL's) Employee Benefits Security Administration has proposed updates to its Voluntary Fiduciary Correction (VFC) Program, including adding a new self-correction component for employers that fail to send 401(k) salary withholding contributions or participant loan repayments to their plans on time. The new feature within the VFC Program would also enable employers and retirement plan officials to notify the DOL electronically that they have self-corrected certain failures. The DOL is accepting comments through Jan. 20, 2023, via the Federal eRulemaking Portal at Docket ID number EBSA-2022-0024.

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