Permit Me to Correct You! IRS Updates Its EPCRS Plan Correction Program

The IRS recently updated its Employee Plans Compliance Resolution System (EPCRS) under Revenue Procedure 2021-30, revising the existing plan-correction program by adding correction procedures for overpayments and eliminating anonymous-submission VCP procedures, while adding a no-fee anonymous pre-submission conference procedure. The updated EPCRS program also expands the plan amendment correction feature of the self-correction program, extends the SCP correction period for significant failures, and extends a temporary safe harbor correction method for certain missed elective deferrals.

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Related Content

• EPCRS Correction Rules and Procedures
  Learn how EPCRS was designed to allow plan sponsors to proactively address operational and plan document failures. Use of the EPCRS voluntary and self-correction programs generally avoids the more costly consequences of having those violations discovered during an IRS audit. EPCRS is available for qualified retirement plans, as well as retirement plans intended to satisfy the requirements of I.R.C. §§ 403(a), 403(b), 408(k) (SEPs), or 408(p) (SIMPLE IRAs).

• Recovering Plan Overpayments
  See how plan sponsors can use the EPCRS program when they find themselves in the unfortunate position of having to recoup amounts that have been overpaid to participants or beneficiaries. Using EPCRS, plan sponsors can provide participants who received an overpayment the option of repaying the excess in a single sum, in installments, or by adjusting future payments.

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    The DOL issues FAQs on rules for disclosing lifetime income information in ERISA Section 105(a) retirement plan benefit statements pursuant to the SECURE Act, Pub. L. No. 116-94, effective September 18, 2021. DOL, Temporary Implementing FAQs; see also 85 Fed. Reg. 59,132 (Sept. 18, 2020).
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