Voluntary Fiduciary Correction Program Notice to Interested Persons for Excise Tax Relief

Summary

Use this Notice to Interested Persons template to satisfy the notification requirement for a qualified retirement plan to obtain excise tax relief under prohibited transaction exemption (PTE) 2002-51 for certain fiduciary violations being remedied under the Voluntary Fiduciary Correction Program (VFCP). This template contains practical guidance and drafting notes. The Department of Labor (DOL) created PTE 2002-51 to provide a class exemption from excise taxes imposed under I.R.C. § 4975(a) and (b) for certain fiduciary violations under the Internal Revenue Code and the Employee Retirement Income Security Act (ERISA) that are being corrected under the VFCP. See 67 Fed. Reg. 70,623 (Nov. 25, 2002), as amended by 71 Fed. Reg. 20,135 (Apr. 19, 2006) and, most recently, 90 Fed. Reg. 3,667 (Jan. 15, 2025). Unless an exception applies, the Notice to Interested Persons must be provided within 60 calendar days after the VFCP submission (or self-correction notice) is filed with the DOL's Employee Benefits Security Administration (EBSA) division to plan participants who are the subject of the VFCP correction (the interested parties). A copy of the Notice to Interested Persons must be sent by the same date to the appropriate EBSA Regional Office indicating the date the notice was furnished. This template notice is based on the model language provided in 90 Fed. Reg. 3,672, Appendix A. The notice is not required to be provided in two circumstances: • De minimis delinquent participant contributions or untimely participant loan repayment transfers (involving excise tax amounts equal to or less than $100), provided certain requirements are met –or– • Failures being addressed through a self-correction component program of the VFCP, as introduced in 90 Fed. Reg. 4,192 (Jan. 15, 2025), effective as of March 17, 2025, provided certain requirements are met 90 Fed. Reg. 3,672, Sections IV.C, IV.D. For information on how to apply the de minimis exception, see Voluntary Fiduciary Correction Program — Related Prohibited Transaction Exemption for IRC Excise Tax Relief. Under the 2025 amendments to PTE 2002-51, it is no longer sufficient to furnish the Notice to Interested Persons solely by posting. It must be delivered in either hardcopy or electronic format and in a manner that is reasonably calculated to result in receipt. No plan assets may be used to pay for the preparation or distribution of the notice. For a discussion of the VFCP, see Voluntary Fiduciary Correction Program. For a sample letter to plan participants affected by a late deposit into the plan of contributions or plan loan repayments, see Delinquent Plan Contribution Notice (401(k) Plan). Also see Voluntary Fiduciary Correction Program Checklist. For a full listing of key content covering retirement plan notification requirements, see ERISA Retirement Plan Notices Resource Kit. For a full listing of key content covering EPCRS and VFCP plan corrections, see EPCRS and VFCP Plan Corrections Resource Kit.