Legal Alert: The Fix Is In: IRS Updates Retirement Plan Correction Programs

The Internal Revenue Service (IRS) provided some alternative entertainment on New Year’s Eve by releasing the long-awaited updated Employee Plans Compliance Resolution System (EPCRS) revenue procedure on December 31, 2012. The primary change in Rev. Proc. 2013-12 is the expansion of the correction programs for section 403(b) plans, the details of which are discussed in our other Legal Alert entitled “IRS Expands Retirement Plan Correction Programs for 403(b) Plans.” This Legal Alert focuses on the changes to EPCRS that apply to all types of retirement plans. Rev. Proc. 2013-12 is effective April 1, 2013, but plan sponsors may rely on this new guidance after December 31, 2012.

The chart below describes some of the more significant changes made in Rev. Proc. 2013-12. Most of the changes are technical or procedural in nature. Many areas of EPCRS that seemed ripe for possible modifications have generally not changed, including loan corrections, methods for determining earnings, de minimis rules, and fee amounts.

Please see full alert below for more information.

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Topics:  403(b) Plans, Defined Benefit Plans, EPCRS, IRS, Retirement Plan

Published In: Administrative Agency Updates, Finance & Banking Updates, Labor & Employment Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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