The Voluntary Correction Program (VCP) allows a plan sponsor to pay a limited fee and receive the IRS’s approval of the correction while also remaining a qualified plan. The VCP program is not a program used by those who have already had an examination by the IRS and must correct the error, but for the plan sponsor who has found errors and wishes to correct them and pay the fee themselves. VCP provides the general procedures for correction of all qualification failures of the plan including operational, plan document, demographic, and employer eligibility.
Many times, the plan sponsor is unsure as to what is being asked for in the application for the VCP submission. The IRS has recently completed a video walking through the submission process. The video does a great job of walking the plan sponsor through the application step by step. See below video if you need guidance on completing your VCP submission.