The Internal Revenue Service (IRS) established the Employee Plans Compliance Resolution System (EPCRS) to provide retirement plan sponsors a mechanism of correcting a retirement plan's operational failures. Periodically, they update these correction methods as they did with Revenue Procedure 2019-19, which was effective as of April 19, 2019. One of the correction methods under EPCRS is self-correction. Under Revenue Procedure 2019-19, plan sponsors may now self-correct failures in two categories that were previously barred from self-correction: (1) problems with plan’s document or operational failures and (2) issues with participant loans.
We discuss these two categories in our 2019 Regulatory Update.
We recently hosted a webinar covering the regulatory impacts to retirement plans in 2019. It covers a majority of the material in our update narrative. In a short time, you will have the opportunity to manage risk by learning about those changes that impact retirement plans the most.
