403(b) Plan Sponsors Can Self-Correct Plan Provisions through March 31, 2020
This correction may involve adding required provisions or correcting defective provisions. The IRS states that you can do this by taking one of these steps by the deadline:
- Adopting a 403(b) pre-approved plan with a 2017 opinion or advisory letter
- Amending your individually designed 403(b) plan
You should also note that:
- The correction must be retroactive to January 1, 2010, or the plan’s effective date, whichever is later.
- If the plan was administered based on the incorrect provision, you must retroactively correct this as well.
- The correction period (known as the remedial amendment period, or RAP) only applies if your organization has adopted a written plan by December 31, 2009, or the effective date of the plan, if that is later. If you do not meet this requirement, you must use the IRS’s Voluntary Correction Program (VCP) to correct the violations.
The IRS has examples of plan provisions and operations that you can self-correct during the RAP or apply to correct under VCP on its website.
Please contact us with any questions or to discuss how we can assist with your employee benefit plans. CapinCrouse offers employee benefit plan audit and consulting services, including compliance assessment.Sign up for e-news and alerts