In this practical webinar, you will learn the fundamental principles of correcting operational and plan document compliance failures in 401(k) and other qualified retirement plans under the IRS’s Employee Plans Compliance Resolution System. You will focus on the IRS’s expansion of EPCRS in its latest, April 19th, 2019 release, Revenue Procedure 2019-19. This update includes more retroactive plan amendments in self-correction where plan operations provided greater benefits or more liberal eligibility than the plan document, and to extend self-correction to many routine participant loan failures. You will also learn about additional situations in which retroactive amendments may be used to correct plan document failures with IRS approval in the voluntary correction program (“VCP”).
Upon course completion, you will be able to:
- Recognize and classify the types of compliance failures that may occur in 401(k) and other qualified retirement plans, as well as 403(b) and 457(b) plans
- Apply the correction principles of EPCRS to compliance failures
- Determine which compliance failures may be self-corrected, and apply the rules for self-correction
- Describe the new rules for self-correction of plan loan failures in SCP
- Outline the new rules for retroactively amending plans in self-correction to conform plan language to plan operations retroactively
- Describe the additional situations in which retroactive amendments can be used in the voluntary correction program (VCP) component of EPCRS
- Adhere to the requirements for EPCRS’s Voluntary Correction Program (VCP) for compliance failures that do not qualify for self-correction
- Outline the new rules for mandatory electronic submission of VCP applications
- Determine the principles and costs of correction, including earnings calculations and 1099-R reporting issues
- Describe how to communicate with plan participants regarding correction
Program Level: Intermediate
Field of Study: Taxes – Technical, Business Law – Technical
Credit Type: Group Internet Based for the Live Program.