What you really need to know about the latest IRS procedure for fixing retirement plan mistakes
Benefitspro.com asked me to write about the new IRS Revenue Procedure. If you didn’t see it there, we are reposting it here on The Principal® blog. Article originally posted on benefitspro.com.
To err is human. To fix complex errors is, well, complex.
I’ve received several phone calls over the past couple of days about the recent revenue procedure issued by the Internal Revenue Service (IRS) that impacts the system for correcting retirement plan compliance mistakes, the Employee Plans Compliance Resolution System (EPCRS).
Mostly, the calls are coming from people who have read that the procedure—known as Internal Revenue Procedure 2013-12 or Rev. Proc. for short—somehow affects 403(b) plans. But the callers are struggling to understand how. They have found the Rev. Proc., and the summaries about the procedure, are overwhelming and highly technical. The fact is that the Rev. Proc. is highly technical because it covers a highly technical issue. Even the shortcut terminology—Rev. Proc., EPCRS—tends to make eyes glaze over.
So what exactly should a financial professional know about the compliance resolution system and the updated procedure? Read more
