The DOL’s Voluntary Fiduciary Correction Program: What Business Owners Need to Know
Fiduciary Responsibility If your small business offers a 401(k) plan to employees, you know that staying compliant with federal regulations is critical. However, mistakes happen—perhaps you deposited employee contributions late or processed a loan incorrectly. The good news is that the U.S. Department of Labor (DOL) has a program to help employers correct these errors before they turn into major problems. It’s called the Voluntary Fiduciary Correction Program (VFCP) , and understanding how it works can help you avoid penalties, legal risks, and protect your employees’ retirement savings. In this post, we’ll break down what the VFCP is, who can use it, the most common errors corrected through the program, and changes that took effect in 2025 that make it even easier for you to stay compliant. What Is the Voluntary Fiduciary Correction Program (VFCP)? The VFCP allows small business owners to voluntarily correct certain violations of the Employee Retirement Income Securi...