(From Venable LLP) On July 16, the IRS issued Revenue Procedure 2021-30, which provides an updated statement of the correction programs under the Employee Plans Compliance Resolution System (EPCRS). The updates reflect a significant changes of the prior rules in the following areas:
- Lengthens the time for self-correcting significant operational failures and document failures.
- Eliminates an anonymous corrections procedure, whereby a submission could be made without revealing the identity of the plan and its sponsor pending agreement on the correction terms.
- Allows a plan not to seek return of overpayments of less than $250. (The previous limit was $100.)
- Extends the provision for correcting elective deferral failures in automatic contribution plans.
- Expands the use of retroactive amendments to correct operational failures under SCP.
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