Retirement plan corrections: IRS issues new procedures
Need to fix issues with your employee retirement plan? IRS just updated its procedures on retirement plan corrections.
The changes to the Employee Plans Compliance Resolution System (EPCRS) get spelled out in Revenue Procedure 2021-30.
Staying in compliance
So your company remains in compliance when making retirement plan corrections, check out some of the key changes:
- New guidance for recouping overpayments to a plan. As long as a defined benefit plan meets certain funding criteria, employers won’t have to reimburse the plan for the full amount of the overpayment.
- An extension of a safe harbor provision that’s part of the Self-Correction Program. So now it runs through Dec. 31, 2023.
- An expansion of the self-correction period for resolving significant operational failures in a plan and failures with plan documents to three years, and
- A higher de minimis amount for having to make corrections on a participant’s behalf is now $250 (from $100).
Note: Most changes are effective as of July 16, 2021.
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
White Papers
Provided by Anaplan
Further Reading
CFOs and benefits professionals can only do so much to influence employees to invest in a company 401(k) plan. So-called influencers are of...
In April, Arkansas Governor Sarah Huckabee Sanders signed legislation making it illegal for Pharmacy Benefit Managers (PBMs) to own or oper...
Layoffs, inflation, AI … these are just some of the factors making employees feel more stressed about their jobs and career future. S...
Now that you have a feel for what positions at your firm should be hybrid, you might be considering giving employees the ultimate work sche...
On Aug. 7, 2025, President Trump signed an executive order expanding 401(k) plans’ ability to include alternative investments – such as...
Some of your year-end health plan responsibilities have lifted, thanks to eleventh-hour legislation from Congress. Plan sponsors that me...
