Keeping your company’s retirement plan tax-qualified means you must remain in compliance, or face the adverse tax consequences affecting both your business and your employees. New procedures effective April 1, 2013, under Employee Plans Compliance Resolutions Systems (EPCRS) can help you comply through new correction measures that address:
Working together, the Internal Revenue Service and DOL initially designed the EPCRS to help companies sponsoring retirement plans stay in compliance by making corrections to errors, while protecting the plan’s participants and maintaining the tax benefits for all. The program set out to address the four major types of failure to comply:
Taking into consideration the most commonly found errors in plan compliance, the programs helps companies rectify situations before their sponsored plan becomes disqualified by developing opportunities for corrective action.
With the new corrective opportunities in place, keeping your sponsored plan qualified is much easier than before. With any errors comes a small price to pay – but it outweighs the alternative. The new corrective steps now available include:
In addition to the above programs, there are some new rules in place related to specific failures to be aware of, including:
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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