IRS Pre-Examination Retirement Plan Compliance Program: Correcting Errors, IRC Rules, Key Issues for Plan Sponsors

BARBRI

This CLE course will provide employee benefits counsel, plan sponsors, and administrators guidance on the IRS pre-examination retirement plan compliance program and procedures. The panel will discuss IRS self-correction rules and procedures under EPCRS (Rev. Proc. 2021-30, as expanded by SECURE 2.0), steps to take after receiving an IRS pre-examination notice, and navigating the requirements and functions under the compliance program. The panel will also address fiduciary liability and risks from failing to correct plan errors and offer best practices to minimize IRS and DOL examinations and potential liability.

Description

The IRS has extended a retirement plan compliance program and has issued pre-examination notices to plan sponsors to allow them to address plan discrepancies. Counsel, plan sponsors, and administrators must understand how to respond to this IRS letter and the procedures involved and take steps to ensure full compliance to avoid an IRS exam.

If a plan sponsor receives an IRS pre-examination notice, they have 90 days to respond. The notice allows a plan sponsor to perform a self-examination, including a compliance review of all plan documents and operations. If there is no response by the end of the 90-day period, the IRS will contact the plan sponsor to schedule their examination.

If the plan sponsor discovers errors after their review, they may rely on the correction principles in the Employee Plans Compliance Resolution System (EPCRS). Alternatively, a closing agreement and payment may be requested. Plan sponsors and their counsel must identify plan errors and respond appropriately to an IRS pre-examination notice.

Listen as our panel discusses IRS self-correction rules and procedures (as updated by SECURE 2.0), recommended next steps after receiving an IRS pre-examination notice, and navigating the requirements and procedures under the compliance program.

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