VFCP Lost Earnings — Frequently Asked Questions
What is the VFCP?
The Voluntary Fiduciary Correction Program is a U.S. Department of Labor (EBSA) program that lets plan officials voluntarily correct ERISA violations — such as late deposits of participant 401(k) or 403(b) contributions — and avoid DOL enforcement actions and civil penalties.
How are lost earnings calculated?
Lost earnings are interest owed on each delinquent contribution from the date it should have been deposited to the correction (recovery) date, computed with the DOL’s published interest rates. This calculator applies those official rates period by period and produces the correction amount — for a single late deposit or in bulk via CSV/Excel.
Is this the official DOL calculator?
No. This is an independent calculator built on the official DOL interest rates and methodology. For actual VFCP filings, use the DOL’s VFCP Online Calculator at askebsa.dol.gov.
Do I still owe the IRS excise tax?
Usually, yes. Late deposits of employee deferrals trigger a 15% excise tax reported on IRS Form 5330 — that filing is separate from the VFCP correction you make with the Department of Labor.
What is the VFCP self-correction component?
Since 2025, eligible late participant contributions can be corrected under the VFCP Self-Correction Component without filing a formal VFCP application. This calculator flags when a correction may qualify — confirm the DOL’s SCC conditions with your own counsel before relying on it.
Educational tool — not legal, tax, or investment advice.