05.06.2025 10.08 CDT

Congress and regulators ease plan corrections. This is welcome relief.

Expanded Self-Correction Options: A New Era of Flexibility

Expanded Self-Correction Options: A New Era of Flexibility

Congress and regulators ease plan corrections. This is welcome relief.

Congress and regulators ease plan corrections. This is welcome relief.

20.06.2023 11.29 CDT

Plan sponsors can now take advantage of new opportunities to self-correct errors.

SECURE 2.0 Guidance Helps Plan Sponsors Clean the Slate

SECURE 2.0 Guidance Helps Plan Sponsors Clean the Slate

Since 1991 the IRS has had a program allowing plan sponsors to correct administrative errors and, over the years the IRS has expanded the availability of this program and the ability to “self-correct” errors without an IRS filing. SECURE 2.0 took this trend--of expanding the availability of self-correction--to the next level by directing the IRS to allow self-correction for a broad range of “inadvertent” errors. IRS Notice 2023-43 clarifies the rules for this expanded self-correction opportunity.