via Lockton Retirement Services: The Beacon
The IRS has long understood that the complexity of plan administration for employers can lead to mistakes. Rather than requiring employers to formally apply to the IRS for approval of the correction of these errors, the IRS created the Employee Plans Correction Resolution System (EPCRS). Under EPCRS, employers have an avenue, without the costs and burden of a formal IR
S review, for correcting numerous common operational errors that frequently occur. Last week was very busy for the IRS as they announced several pieces of guidance that amend how mistakes are corrected through ECPRS; several of the amended guidelines are very beneficial to employers.
Correcting the Missed Opportunity to Defer
As more plans adopt automatic enrollment, automatic escalation, or simply streamline the process for making a deferral election, it is common that mistakes are made, resulting in the missed opportunity for an employee to defer income into the plan…
Read the full article here – IRS Fixing Common Plan Mistakes