IRS Explains Impact of Missed Deadline for Plan Restatements
In the May 23, 2022, issue of Employee Plans News, the IRS explains the applicability of the Employee Plans Compliance Resolution System (EPCRS) for pre-approved plans that are not restated by appropriate deadlines. Generally, 401(a) and 403(b) plans that fail to timely restate their plans on a pre-approved plan document could correct resulting defects under the EPCRS Self Correction Program if the defect has existed for less than the past three years. Older defects can be pursued by filing a Voluntary Correction Program (VCP) application with the IRS to correct the failure. The IRS indicates that the failure to qualify as a pre-approved plan is not in and of itself a qualification issue.