The Treasury Department and Internal Revenue Service issued two new revenue procedures designed to simplify how retirement plan sponsors and IRA owners can correct administrative errors, the IRS announced today. Revenue Procedure 2026-34, effective immediately, updates the Employee Plans Compliance Resolution System (EPCRS), which allows sponsors of qualified plans, 403(b) plans, SEP arrangements, and SIMPLE IRA plans to make corrections while continuing to provide tax-favored retirement benefits. The revised procedure replaces and restructures the previous Revenue Procedure 2021-30.
A second procedure, Revenue Procedure 2026-33, establishes the IRA Compliance Resolution System (ICRS) for individual retirement accounts, effective May 1, 2027. Created under the SECURE 2.0 Act of 2022, the new system permits IRA custodians and IRA owners to request correction of certain eligible inadvertent failures caused by service-provider errors. The system also streamlines the process for requesting waivers of the 60-day rollover requirement, which previously required private letter ruling requests.
"Hard working Americans will benefit from these procedures because they simplify and speed up how errors with certain retirement plans and IRAs can get corrected when there is a simple problem," said IRS Chief Executive Officer Frank J. Bisignano.