The IRS recently issued Notice 2023-43 providing new interim guidance for self-correction of plan errors. This guidance applies to corrections made prior to the anticipated issuance of revisions to the Employee Plans Compliance Resolution System ("EPCRS"). Under this guidance, provided certain conditions are satisfied, most Eligible Inadvertent Failures (defined below) may be self-corrected, though there are specific types of failures that may not be self-corrected at this time (discussed below).
Self-correction allows plans and plan sponsors to fix these failures without paying a fee and submitting an application under the IRS's Voluntary Compliance Program ("VCP"). Traditionally, the EPCRS has set forth the specific circumstances in which self-correction is permissible. Over the years, as new versions of the EPCRS have been issued these circumstances have been expanded. The current version of the EPCRS (set forth in Rev. Proc. 2021-30), allows self-correction of most operational problems and certain plan document failures, provided the failures are "insignificant" or are corrected within a specified window after the failure occurred.
Section 305(a) of the SECURE 2.0 Act, passed at the end of last year, further expands the circumstances in which self-correction is permitted. Absent specific rules to the contrary, Section 305(a) allows for any eligible inadvertent failure to comply with the rules applicable under Section 401(a) 403(a), 403(b), 408(p), or 408(k)...
The court found the relator did not allege specific reimbursement requests or facts linking challenged promotional statements to government payments. A Maryland federal district court dismissed a ...