Labor Agency Finalizes First-Ever 401(k) Self-Correction Rule

Updates to the US Labor Department’s voluntary workplace 401(k) correction program will allow plans to fix delayed contributions and mistaken participant loans on their own without triggering a formal application process.

DOL’s Employee Benefits Security Administration issued the final rule and updated exemption (RIN: 1210-AB64 and 1210-ZA23) Tuesday, part of congressional push to simplify administrative and procedural requirements on plan sponsors navigating the Voluntary Fiduciary Correction Program.

It is the first self-correction feature EBSA has added to the program. Clerical errors can often result in employers missing required contributions in the form of payroll deductions or loan repayments. The ...