July 25, 2017
The IRS recently updated the 401(k) Plan Fix-It Guide to reflect updates to the Employee Plans Compliance Resolution System (EPCRS).
As background, IRS Fix-It Guides provide information on how to identify, fix and avoid common 401(k) plan compliance failures. The recent changes mainly reflect the modifications made to the EPCRS by Revenue Procedure 2016-51.
Specifically, this guide includes a chart on the different correction procedures available to employers who discover certain plan failures. The portions of the chart that address plan documents and amendments, compensation mistakes, excluding eligible employees and participant loans have all been updated to provide additional information and examples of correction methods. For example, the section on plan amendments now discusses the recent revisions to the determination letter program.
Additionally, the guide links to pages on the different 401(k) plan types, EPCRS and additional resources. Although this guide does not impose any specific employer requirements, it does provide valuable information to plan sponsors who are looking to keep their 401(k) plans compliant.
401(k) Plan Fix-It Guide »