IRS Provides Welcome Changes for Fixing Common Plan Errors

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

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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