SECTION 13. FEES
Internal Revenue Bulletin 1998-12 · 2026-10-03 edition · updated 2026-10-04 · United States
.01 Rev. Proc. 98–8 modified. The VCR compliance fee is processed under the user fee program described in Rev. Proc. 98–8, 1998–1 I.R.B. 225, as modified by this revenue procedure.
.02 VCR fee. Unless SVP is applicable, the VCR compliance fee depends on the assets of the plan and the number of plan participants.
(1) The fee for a plan with assets of less than $500,000, and no more than 1,000 plan participants, is $500.
(2) The fee for a plan with assets of at least $500,000, and no more than 1,000 plan participants, is $1,250.
(3) The fee for a plan with more than 1,000 plan participants but less than 10,000 plan participants is $5,000. (4) The fee for a plan with 10,000 or more plan participants is $10,000.
.03 Establishing number of plan par- ticipants. The compliance fee is calculated by the plan sponsor using the numbers from the most recently filed Form 5500 series to establish the fee. Thus, with respect to the 1997 Form 5500, the plan sponsor would use the number shown on line 7(f) (or the equivalent line on the Form 5500 C/R or EZ) to establish the number of plan participants and would use line 31(f) (or the equivalent line on the Form 5500 C/R or EZ) to establish the amount of plan assets.
.04 SVP fee. The SVP compliance fee is $350.
.05 Walk-in CAP compliance correc- tion fee . (1) Compliance correction fee chart. The compliance correction fee for a Walk-in CAP application is determined in accordance with the chart below. The chart contains a graduated range of fees based on the size of the plan (with the number of participants determined as provided in section 13.03). Each range includes a minimum amount, a maximum amount, and a presumptive amount. In each case, the minimum amount is the applicable VCR fee in section 13.02. It is expected that in most instances the compliance correction fee imposed will be at or near the presumptive amount in each range; however, the fee may be a higher or lower amount within the range, depending on the factors in paragraph (2) below.
WALK-IN CAP COMPLIANCE CORRECTION FEES
| # of participants | Fee range | Presumptive Amount |
|---|---|---|
| 10 or fewer | VCR fee* to $4,000 | $2,000 |
| 11 to 50 | VCR fee* to $8,000 | $4,000 |
| 51 to 100 | VCR fee* to $12,000 | $6,000 |
| 101 to 300 | VCR fee* to $16,000 | $8,000 |
| 301 to 1000 | VCR fee* to $30,000 | $15,000 |
| over 1,000 | VCR fee* to $70,000 | $35,000 |
- Items marked by asterisk refer to the VCR compliance fee that would apply under section 13.02 if the plan had been submitted under the VCR program.
(2) Factors considered . Consideration of whether the compliance correction fee should be equal to, greater than, or less than the presumptive amount will depend on factors relating to the nature, extent, and severity of the failure. These factors include: (a) whether the failure is a failure to satisfy the requirements of § 401(a)(4), § 401(a)(26), or § 410(b), (b) whether the plan has both Operational and Plan Document Failures, (c) the period
over which the violation occurred (for example, the time that has elapsed since the end of the applicable remedial amendment period under § 401(b) for a Plan Document Failure), and (d) whether the plan has a Favorable Letter.
(3) Egregious failures. In cases involving failures that are egregious (as described in section 4.06), (a) the maximum compliance correction fee applicable to the plan under the chart in 13.05(1) is in
creased to 40 percent of the Maximum Payment Amount, and (b) no presumptive amount applies.
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