To process Voluntary Correction Program (VCP) applications as efficiently as possible, it’s important to start with an accurate correctly completed submission. Use these tips to avoid common mistakes when completing Form 14568, Model VCP Compliance Statement and Form 14568-H, Model VCP Compliance Statement - Schedule 8: Failure to Pay Required Minimum Distributions Timely, a VCP submission disclosing a required minimum distribution (RMD) failure: 1. Use a separate line for each plan year the failure occurred when completing the table identifying the failure in Section I of Form 14568-H. Then, identify the number of affected participants, and the total missed RMD amounts for each plan year. It’s important to correctly identify all years of the failure. Example: Terry, a former participant in the ABC, Inc. 401(k) plan attained age 70 ½ in 2016. The ABC, Inc. 401(k) plan didn’t pay Terry his RMD until 2018. An RMD was due to Terry on April 1, 2017 (April 1 of the year following the year that Terry attained age 70 ½). To complete the table in Section I, the year of failure would be the year Terry attained age 70 ½ and every year after that the plan didn’t pay him an RMD. Therefore, the plan years of the failure are both 2016 and 2017, because his RMD was paid in 2018. When ABC, Inc. lists the number of affected participants and missed RMDs in Section I, they should include Terry’s missed RMD for each year of failure (2016 and 2017) and list each year on a separate line in the table. 2. Include the total of the missed RMDs but do not include earnings. 3. Complete Form 14568-H, Section II: For a defined contribution plan, describe how you calculated earnings to adjust the corrective distribution. For a defined benefit plan, describe the method used to determine the additional payment. For a defined benefit plan, check the correct box under the question that asks about lump sum payments under IRC Section 436(d). If “no,” include a copy of the plan’s adjusted funding target attainment percentage (AFTAP) actuarial certification with your submission. 4. Complete Form 14568-H, Sections III and IV. 5. Don’t forget to include all items shown on the Enclosure list in Section V of Form 14568-H. 6. Complete Form 14568, Section IV, and include attachments (if needed) that explain the method to locate and notify former participants and beneficiaries (or provide this information in another format). Remember that the IRS Letter Forwarding Service and Social Security Letter Forwarding Service programs are no longer available for this purpose. 7. Indicate on Form 14568, Section VI, if requesting excise tax relief under IRC Section 4974. Check the correct box and provide the failure number for which you’re requesting relief. Don’t leave the failure number box blank.