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ARTICLE · 05 JUNE 2019

Benefits Counselor – May 2019 Update

The Internal Revenue Service ("IRS") issued Revenue Procedure ("Rev. Proc.") 2019-19, which updates and expands the Employee Plans Compliance Resolution System ("EPCRS"),

United StatesEmployment and HR

RETIREMENT PLAN DEVELOPMENTS

IRS Updates and Expands Correction Program for Retirement Plans

The Internal Revenue Service ("IRS") issued Revenue Procedure ("Rev. Proc.") 2019-19, which updates and expands the Employee Plans Compliance Resolution System ("EPCRS"), the IRS's correction program for qualified plans. Rev. Proc. 2019-19 replaces Rev. Proc. 2018-52, the most recent consolidated version of EPCRS. Rev. Proc. 2019-19 expands the EPCRS' Self-Correction Program ("SCP") by allowing plan sponsors to correct more plan failures without involving the IRS or paying a user fee. Under Rev. Proc. 2019-19, the SCP allows—through the adoption of retroactive plan amendments—the self-correction of (1) certain plan document failures, (2) certain plan loan failures, and (3) additional categories of operational failures.

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