IRS Updates Retirement Plan Correction Program and Creates IRA Correction System: IRA Program Takes Effect May 2027
The Department of the Treasury and the Internal Revenue Service (IRS) issued two revenue procedures on Oct. 22 (IR-2026-126). Revenue Procedure 2026-34 expands and restructures the Employee Plans Compliance Resolution System (EPCRS), replacing Revenue Procedure 2021-30, and is effective immediately. Revenue Procedure 2026-33 establishes the IRA Compliance Resolution System (ICRS), effective May 1, 2027.
EPCRS includes the Self-Correction Program, the Voluntary Correction Program and the Audit Closing Agreement Program, which let sponsors of qualified plans, Section 403(b) plans, SEP arrangements and SIMPLE IRA plans correct errors while keeping tax-favored treatment. Modeled on the employee-plan system, ICRS — created under the SECURE 2.0 Act of 2022 — permits IRA custodians and owners to request correction of certain eligible inadvertent failures caused by service-provider errors, and provides a process to request waivers of the 60-day rollover requirement; those waiver requests will transition from private letter rulings to ICRS over 2027 and 2028.
"Hard working Americans will benefit from these procedures because they simplify and speed up how errors with certain retirement plans and IRAs can get corrected when there is a simple problem," said IRS Chief Executive Officer Frank J. Bisignano. Treasury and the IRS are inviting comments on both programs.
Source: GSM · USA (original Chinese edition)
Photo: 图：位于华盛顿 Constitution Avenue 的国税局大楼（IRS Building Constitution Avenue，作者：Cliff from Arlington, Virginia, USA，CC BY 2.0，经 Wikimedia Commons）。Photo: The IRS building on Constitution Avenue, Washington, D.C. (Cliff from Arlington, Virginia, USA, CC BY 2.0, via Wikimedia Commons).
