IRS Plays Musical Chairs With Voluntary Correction Programs
Section 401(k) and other retirement plans are notoriously complicated to operate and no plan sponsor gets it 100% correct, 100% of the time. When problems arise, plan sponsors may correct certain errors – technically “failures” — under an IRS program called the Employee Plans Compliance Resolution System, or EPCRS. Failures corrected this way cannot later be the basis for revoking the tax-qualified status of the plan, or imposing other tax penalties or interest. EPCRS is set forth in a Revenue Procedure that the IRS updates every few years. On July 16, 2021 the…
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Summertime Blues for Your 401(k) Plan, P.2: Eligibility Failures
This is the second installment in five posts covering the most common 401(k) plan operational issues that arise during Form 5500 prep season for calendar year plans, which happens to be summertime: the season of outdoors fun and enjoyment for folks outside the ERISA bubble. This time around we will focus on a few selected errors related to eligibility under the plan – who gets to participate in the plan, and when. (More information on fixing eligibility errors in a 401(k) plan, courtesy of the IRS, is found here.) Note that the following…
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Summertime Blues for Your 401(k) Plan, Pt. 1
Summertime is for fun, relaxation and a break from work, but it is also a crucial period for calendar year 401(k) plans. Form 5500 Annual Return/Reports are due July 31 for these plans, and even if an extension to October 15 is obtained, the summer months are when plan operations and finances are under scrutiny. This is particularly true for “large” plans – those with 100 or more participants on the first day of your last plan year. (Note that special transition rules apply when switching from small plan to large plan Form…
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“I am a benefits (ERISA) attorney. I help businesses prevent, and fix, problems with their employee benefit plans in order to preserve the tax-qualified status of those plans, and ultimately the saleability of their businesses.”
-Christine P. Roberts
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Christine P. Roberts
Mullen & Henzell L.L.P.
phone: (805) 966-1501
email: croberts@mullenlaw.com
