Correcting Plan Errors |
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Nonamenders and Voluntary Correction Program (VCP)
Voluntary Correction has written an explanation of the nonamender process under the VCP. This explanation will tell you all you need to know about filing for relief under VCP for nonamender failures, including when you can file (with examples of when Appendix D or F should be used) and when a determination letter should be filed as part of a VCP submission. Check it out!
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The Employee Plans Compliance Resolution System (EPCRS) offers a comprehensive system of correction programs for sponsors of retirement plans that are intended to satisfy the requirements of sections 401(a), 403(a), 403(b), 408(k), or 408(p) of the Internal Revenue Code, but which have not met these requirements for a period of time. This system allows plan sponsors to correct these failures and thereby continue to provide their employees with retirement benefits on a tax-favored basis. The components of EPCRS are the Self-Correction Program (SCP), the Voluntary Correction Program (VCP), and the Audit Closing Agreement Program (Audit CAP).
Do I Have a Qualification Problem?
Keeping a watchful eye on the retirement plan your business sponsors to help employees prepare for their retirement years is just smart business practice. Employees are counting on the benefits promised by the plan and want to have the substantial tax benefits that saving for retirement through a tax-favored plan provides. Protecting these tax benefits is an important duty assumed by business owners when they adopt a retirement plan.
Identifying, Correcting, and Avoiding Common Plan Errors
Tips on how to find, fix, and avoid common mistakes in retirement plans. In response to customer feedback, we have also posted user-friendly Fix-It Guides. This enables users to navigate, select and print only the mistakes that are of interest to them.
What do you need to do to protect this important plan?
Hopefully you've adopted the plan that best suits the needs of you and your employees and fits your business circumstances. The plan that includes features appropriate for your business will make operating the plan much easier. For help in selecting the appropriate retirement plan, see Choosing a Retirement Solution for Your Small Business.
How do you take care of that plan day to day and year to year?
Setting up operating procedures for the plan is an important first step. If you need help, a benefits professional can help you set up a system that works for you and your retirement plan. As your business situation changes you'll want to review how these new circumstances will impact your plan and its operation. Buying a business? New payroll system provider? Change in accountants? Closing a plant? Any of these changes could have a big impact on your plan.
Ten Reasons to Identify and Correct Mistakes
"Maintaining Your Plan" video - tips on what employers/sponsors need to do to keep their retirement plan healthy. (6:45 min.)
A Guide to Common Qualified Plan Requirements
Frequently Asked Questions (FAQs)
Top Ten Failures Found in Voluntary Correction Program
EP Compliance Trends and Tips
Have a Question about your Retirement Plan?
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Correcting Qualification Problems
Through EPCRS
Revenue Procedure 2008-50 (PDF)
Revenue Procedure 2008-50 (HTML)
Fill-In Appendices:
Appendix C - VCP Checklist
Appendix D - VCP Submission
Appendix E - Acknowledgement Letter
Appendix F - Streamlined VCP Submission
Appendix F - Schedule 1 - Interim and Certain Discretionary Nonamender Failures
Appendix F - Schedule 2 - Nonamender Failures (other than those to which Schedule 1 applies)
Appendix F - Schedule 3 - SEPs and SARSEPs
Appendix F - Schedule 4 - SIMPLE IRAs
Appendix F - Schedule 5 - Plan Loan Failures (Qualified Plans & 403(b) Plans)
Appendix F - Schedule 6 - Employer Eligibility Failures (401(k) and 403(b) Plans Only)
Appendix F - Schedule 7 - Failure to Distribute Elective Deferrals in Excess of the Section 402(g) Limit
Appendix F - Schedule 8 - Failure to Pay Required Minimum Distributions Timely under Section 401(a)(9)
Appendix F - Schedule 9 - Correction by Plan Amendment (in accordance with Appendix B)
Summary of Changes
Topical Index
Revenue Procedure 2006-27
Other EPCRS Resources
Q & A's - Recent Outreach Events
VCP Tools
VCP Acknowledgement Letter
VCP Application Guide
Common VCP Application Errors
Overview of EPCRS
Introduction
Description of the EPCRS
Effect of the EPCRS
Eligibility, Definitions and
General Correction Principles
Correction Principles
Self-Correction Program
- Eligibility Flowcharts
Voluntary Correction Program
Audit Closing Agreement Program
Frequently Asked Questions (FAQ’s)
"Self-Correcting Plan Mistakes" video - a discussion on using the Self-Correction Program for a common plan mistake. (1:59 min.)
"Fixing Plan Mistakes Found During an IRS Audit" video - IRS EP Examinations Director discusses what happens when EP Agents find mistakes while examining retirement plans. (4:45 min.)
Abusive Tax Avoidance Transactions
EP Team Audit (EPTA) Program
Forms and Publications
Publication 4224,
Retirement Plan Correction Programs
Other EP Forms and Pubs
Other Government Correction
Programs for Retirement Plans |
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Page Last Reviewed or Updated: March 24, 2009