Friday, August 15, 2008

IRS Revises Voluntary Correction Program for Retirement Plans

According to the IRS’ latest news release, they have “updated guidance on the voluntary correction program for employee retirement plans – the Employee Plans Compliance Resolution System (EPCRS).

‘Employers and plan administrators want to comply with the tax laws and regulations to protect plan participants,’ said Michael Julianelle, director of the IRS’s Employee Plans division. ‘EPCRS helps employers and plan administrators take a proactive role in identifying and fixing mistakes. It also encourages implementation of practices and procedures that ensure retirement plans comply with laws and regulations.’

Under EPCRS, plan sponsors and plan professionals can correct certain errors in employee retirement plans, in some cases without having to notify the IRS. Correcting plans in this way allows participants to continue receiving tax-favored retirement benefits and protects the retirement benefits of employees and retirees.”

To read more on the IRS’ updates to the Employee Plans Compliance Resolution System click here.

Blog Archive