C. Failure to Make Required Employer Contributions (SEPs or SARSEPs)
The plan sponsor failed to make employer contributions on behalf of eligible employees as required under the terms
of the plan.
The failure occurred on account of the erroneous exclusion of eligible employees.
The failure occurred due to errors in the determination of compensation for eligible employees.
The failure occurred for the following plan year(s)
Description of the Proposed Method of Correction
The plan sponsor has contributed (or will contribute) additional amounts to the plan on behalf of each affected
employee. For each affected employee, the corrective contribution will be determined by calculating the contribution
the employee would have been entitled to under the terms of the plan and subtracting any contributions already made
on behalf of the participant for the plan year. The required contribution made on behalf of an affected participant will
be adjusted for earnings. Earnings will be calculated from the last day of the plan year for which the failure occurred
through the date of the corrective contribution. The corrective contribution (adjusted for earnings) will be made to each
affected employee’s SEP (or SARSEP, if applicable) IRA. If an affected employee does not have a SEP (or SARSEP,
if applicable) IRA, a SEP (or SARSEP, if applicable) IRA will be established for that employee.
The total corrective contribution (before adjusting for earnings) on behalf of the affected NHCEs for each plan year is
Earnings will be calculated for an affected employee on the basis of the following method (check one)
Actual investment results of the affected employee’s SEP or SARSEP IRA.
The interest rate incorporated in the VFCP Online Calculator, since the actual earnings of the affected employee’s
IRA cannot be ascertained.
Actual investment results for years in which data is available, or the rate incorporated in the VFCP Online
Calculator for years in which the actual earnings of the affected employee’s IRA cannot be ascertained. The
VFCP Online Calculator was or will be used for the following year(s)
Catalog Number 66147U